Raymond shares fall
Following the demerger, Raymond Lifestyle listed its shares for investors on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on Thursday. Raymond Lifestyle is listed at a premium of 93% over the base price. In June, Raymond Lifestyle was spun off from its parent company.
After entering the domestic market, Raymond Lifestyle unlocked the quotations of its shares in the stock market on Thursday morning. Shares of Raymond Lifestyle are trading at Rs 3,020 per share on NSE and Rs 3,000 per share on BSE. Following this listing, two companies of the Raymond Group have been listed in the domestic market.
5% drop in shares
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After listing, the company’s shares registered a 5% drop due to profit-booking. At the same time, the parent company Raymond Limited’s shares also fell by 1%, causing investors to lose thousands of rupees. However, in view of the upcoming wedding season, this listing gives a valuation of Rs 18.3 billion to Raymond Lifestyle.
What is the estimate for the business?
According to the Economic Times report, Ventura Securities has estimated the valuation of the lifestyle business at Rs 30,000 crore. Based on this assessment, the target price for one share is Rs 4,927. Raymond Lifestyle’s revenue is projected to grow by 12-15 per cent by fiscal 2028, while EBITDA is expected to double to Rs 2,000 crore.
Major brands are included in the company.
Raymond Lifestyle brands include major brands such as Park Avenue, Raymond, Parx, Ethnics by Raymond and ColorPlus. Despite this, it remains underpenetrated with a total EBO (exclusive brand outlets) of 424 at the end of 1QFY25.
In the first quarter, the consumer business in the Indian textile sector posted good sales, which translated into healthy profits for textile manufacturers. Raymond had reported a profit of Rs 10,650 crore ($128.7 million) in the quarter ended June 30, compared with Rs 809 crore a year earlier.
