Raymond Lifestyle Q2 Review - Subdued Growth In A Difficult Demand Environment, Hopes Remain High: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Q2 FY25 showcased weak set of results however moving into H2 FY25 we can expect a good traction for Raymonds Lifestyle Ltd.’s products led by festivities and weddings (~45-48 wedding days in H2 FY25 versus ~11-12 wedding days in H1 FY25). We expect Raymond to maintain its leadership position in the men’s wedding wear category through its branded textile and branded apparel businesses. Retail expansion in the branded apparel space coupled with premiumization, casualization and product development, strong expansion plans in emerging categories, increase in garmenting capacity accompanied by a strong order book shall drive growth going ahead. Going forward, during FY25-27E we expect an average annual operating cash flow of ~Rs 6.9 billion (cumulative ~Rs 21 billion) and average annual free cash flow of Rs 6.3 billion (cumulative ~Rs 19 billion). Considering the mid-single digit decline in revenue during H1 FY25 (versus our estimate of low single digit decline) we have marginally cut our revenue estimates revenue/ PAT estimates for FY25-FY27E by ~ 2%/ ~4 respectively. We expect the company to make up for the mid-single digit decline in topline in H1 FY25 with a low to mid-teens growth in H2 FY25 led by festivities and strong wedding days. We have factored in 8.8%/ 11%/ 19.2% revenue/ Ebitda/ Adjusted PAT CAGR over FY24- FY27E. We maintain our Buy rating with a revised target price of Rs 2,789 (versus Rs 2,845 earlier) based on SOTP valuation method, valuing branded textiles, branded apparel and B2B businesses at 11x/18x/9x Sept 2026E EV/Ebitda..Click on the attachment to read the full report:.PB Fintech Q2 Results Review - Insurance Led Revenue Beat; Higher Opex Limiting PAT Growth: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Raymond Lifestyle Q2 Review - Subdued Growth In A Difficult Demand Environment, Hopes Remain High: Systematix

The brokerage expects the company to maintain its leadership position in the men’s wedding wear category through its branded textile and branded apparel businesses.

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Raymond Lifestyle Q2 Review - Subdued Growth In A Difficult Demand Environment, Hopes Remain High: Systematix

The brokerage expects the company to maintain its leadership position in the men’s wedding wear category through its branded textile and branded apparel businesses.

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