How Is The Share Price Of Raymond Lifestyle Valued

The consumer lifestyle business gets nearly 36% of its revenue from wedding and ethnic wear segment. Its next biggest segment is the branded apparel segment followed by garment exports and textiles.

The company is betting on the wedding and ethnic business segment to drive valuation and growth. It already enjoys little over 20% in Ebitda margins. While the other businesses enjoy Ebitda margins in low single digits.

The wedding and ethnic wear segment of Raymond can be compared with Vedant Fashions Pvt.—the owner of brand Manyavar. Branded apparels can be compared with Aditya Birla Fashion & Retail Ltd. While, the garment exports with Gokaldas Exports Ltd. and textile with Arvind Ltd.

While Raymond's wedding and ethnic wear segment is similar to Vedant Fashions, the Manyavar owner trades at a higher price to earnings ratio of 38-times fiscal 2025 earnings and also enjoys a higher Ebitda margin.

Raymond has guided for topline growth in the range of 12-15% per annum. It has also guided for doubling of Ebitda by fiscal 2027. Assuming a 15% growth in bottomline, profit after tax could be around Rs 640 crore in fiscal 2025.

At a 30-times price to earnings (a nearly 21% discount to Vedant Fashion), the company would have a market cap of nearly Rs 19,165 crore and a discovered price of around Rs 3,142 per share upon listing.

Another way to look at this business could be the market cap to sales multiple of peers and discounting it against the other industry players. This could give it a market cap of around Rs 47,000 crore, thereby giving the company a share value of nearly Rs 7,800 per share.