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
Although the valuation of the Raymond Lifestyle Ltd.'s business has almost doubled since the demerger, the stock is currently trading at a relatively lower price/earning and an enterprise value/Ebitda (pre-Ind-AS-116) of 25 times and 16 times on FY26E, respectively.
The valuation is significantly lower than that of our coverage universe and other retail and discretionary companies, which are valued at an EV/Ebitda of ~35-40 times on FY26E.
While Raymond Lifestyle benefits from strong brand affinity, its valuation has been impeded by sluggish execution in the past (volatility in PAT growth over FY10-20).
However, as Raymond Lifestyle continues to exhibit a positive growth trajectory, characterized by revenue/profit after tax compound annual growth rate of 11%/15% over FY24-26E, we believe valuations could re-rate.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
