One of India’s leading textile and lifestyle companies is poised for significant growth, with analysts projecting a 29% upside potential in its stock value. The promising outlook stems from the company’s strategic brand expansion, particularly in ethnic wear, coupled with disciplined financial management and a clear focus on sustainable growth initiatives.
Share Price Movement
The share price of Raymond Lifestyle Limited went up by 3.7 percent to Rs. 2,087 per share on Thursday, an increase from its previous close of Rs. 2,013.25 per share. The market capitalisation now stands at approximately Rs. 12,525 crore as of December 26, 2024.
Target Price & Rationale
Motilal Oswal has issued a buy rating on Raymond Lifestyle (RLL) with a target price of Rs 3,000, representing a 29% upside from the current price of Rs 2,089. The brokerage’s bullish stance is driven by RLL’s renewed focus on growth strategies, disciplined working capital management, and expansion in the ethnic wear market through Ethnix by Raymond.
The firm sees significant growth potential in RLL’s branded apparel segment, sleepwear, and innerwear categories, along with opportunities in garment exports due to global headwinds in competing markets and favourable trade agreements.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Raymond Lifestyle’s consolidated revenue from operations has decreased by 5.2 percent YOY from Rs. 1,803 crore in Q2 FY24 to Rs. 1,708 crore in Q2 FY25 and increased by 40 percent QoQ from Rs. 1,220 crore in Q4 FY24.
The company’s consolidated net profit has decreased by 69.8 percent, from Rs. 139 crore in Q2 FY24 to Rs. 41 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net loss has turned to a profit QoQ from a loss of Rs. 23 crore.
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Market Outlook
The Indian textile and apparel industry is set for significant growth, with exports reaching US $2.24 billion in FY25. Cotton production is expected to hit 7.2 million tonnes by 2030, driven by rising consumer demand. The market is projected to grow at a 10% CAGR, reaching US $350 billion by 2030, with exports hitting US $100 billion.
India has a competitive edge due to skilled labour and low production costs. The government plans to establish 75 textile hubs, further boosting the industry’s growth potential.
Shareholding Pattern
As of the September 2024 shareholding pattern, Raymond Lifestyle Limited is primarily held by the promoters at 54.67 percent, foreign institutional investors hold 12.63 percent, and the public with 24.78 percent.
About Company
Raymond Lifestyle Ltd, a pioneer in the textile and apparel industry, has redefined fashion since its inception in 2024. Renowned for high-quality fabrics and ready-to-wear collections, the company excels in delivering diverse offerings. From formal to ethnic wear, Raymond Lifestyle has carved a niche in the competitive fashion landscape, becoming a preferred choice for consumers worldwide.
The company’s product portfolio is segmented into branded textiles, apparel, garmenting, and high-value cotton shirting. Iconic brands like Park Avenue and ColorPlus dominate its apparel line, catering to multi-brand outlets and exclusive Raymond stores. Raymond leads the worsted suiting fabric sector and excels in premium cotton and linen fabrics, making strides in both domestic and export markets. Its historic innovations include machine-washable wool blends and UV-resistant fabrics, setting benchmarks in textile technology.
With over 900 stores across 500 towns and an expanding global presence, Raymond Lifestyle continues to strengthen its market leadership. Its commitment to quality, innovation, and strategic growth ensures a bright future in the ever-evolving fashion industry.
Written By Fazal Ul Vahab C H
Disclaimer
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