Raymond - Pushing For Growth With Simplifying Structure: Motilal Oswal

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..Motilal Oswal Report.Our SOTP-based model values Raymond Ltd.'s real estate business at eight times FY26E enterprise value/Ebitda on embedded Ebitda, assuming pre-sales of Rs 40 billion and 25% Ebitda margin, and arrives at a valuation of Rs 80 billion (i.e., Rs 1200/share). We assign a price/earning of 20 times on FY26E to the lifestyle business, arriving at a value of Rs 2,340/share (Rs 2,930 post demerger in Raymond Lifestyle Ltd.The engineering business is valued at 8x FY26E EV/Ebitda, arriving at a value of Rs 215/share. The combined value of the three businesses works out to be Rs 3,755/share. We retain Buy rating on the stock.Accordingly, we expect the per share value of Raymond will be ~Rs 1,415 (value of Rs 94 billion) after the record date (July 11, 2024), which includes Rs 1,200 of real estate and Rs 215 of the engineering business. The Lifestyle business could be listed at ~Rs 2,930/share (20 times FY26E EPS) and value of Rs 156 billion..Click on the attachment to read the full report:.Raymond - Real Estate Demerger Another Solid Value Creation Initiative: Systematix.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 - Pushing For Growth With Simplifying Structure: Motilal Oswal

The group will now have a pure-play real estate arm focused on monetizing its legacy land parcel in Thane, along with expanding footprints in MMR, Pune

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Raymond - Pushing For Growth With Simplifying Structure: Motilal Oswal

The group will now have a pure-play real estate arm focused on monetizing its legacy land parcel in Thane, along with expanding footprints in MMR, Pune

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