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Raymond Lifestyle Ltd. is expected to experience solid growth as the demand has increased due to the festive and wedding seasons, according to Motilal Oswal Financial Services Ltd. in a statement on Wednesday. The company faced challenges previously as demand had been sluggish for the past 12–15 months.
Motilal Oswal Financial Services Ltd. maintained a ‘Buy’ rating on Raymond Lifestyle Ltd. with a target price remaining at Rs 3,000. This target price signifies a potential upside of 48.43% compared to Tuesday’s closing price.
The brokerage predicts double-digit growth of approximately 12–14% in secondary sales along with improved collections in the third quarter for Raymond Lifestyle. Notably, enhancements in primary sales demand will reflect with a quarter lag due to increased inventory and weakening demand in recent months.
Wedding days are extending into the latter half of the financial year 2026, which will sustain a strong demand momentum. This is anticipated to create a favorable situation for Raymond Lifestyle, as its wedding portfolio represents 35–40% of its total revenue.
Raymond Lifestyle aims for revenue growth of 12–14% and Ebitda/PAT growth of 15–18% in the medium term. According to Motilal Oswal Financial Services, the branded clothing sector will be the primary growth catalyst with an expansion of exclusive brand outlets and an increase in Ethnix, alongside Raymond Lifestyle’s entry into sleepwear and innerwear.
Raymond Lifestyle is striving to raise the count of exclusive brand outlets to 900 by the financial year 2027, as brands such as Park Avenue, ColorPlus, and Ethnix may extend their presence to 300 stores each across Tier-1 to Tier-4 cities, Motilal Oswal Financial Services indicated.
The brokerage noted that Raymond Lifestyle could see an additional revenue of Rs 300 crore by the financial year 2027 from the sleepwear and innerwear segment.
The company operates with a 30% operational return on capital employed, and the management anticipates further improvement. Enhanced demand, better collections, and a reduction in capital expenditures will contribute to the improvement of ROCE for Raymond Lifestyle.
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