"Good management in a bad business is better than bad management in a good business."
Читать полностью…
Good conversation on sector rotation
https://youtu.be/LSOXBOXxsTw?si=wic_KALuU3SuAJDk
Raymond's Lifestyle (Interesting Opportunity)
Recently it got demerged from Raymond ltd
Future Guidance
~ Double EBITDA by 2028
~ 12-15% REV growth
~ ₹600-700 Cr Free Cash generation
FY24 Segmental Performance
Branded Textile
- REV: ₹3,449 Cr
- EBITDA: ₹706 Cr (20.5%)
Branded Apparel
- REV: ₹1,587 Cr
- EBITDA: ₹183 Cr (11.5%)
Garmenting
- REV: ₹1,035 Cr
- EBITDA: ₹107 Cr (10.3%)
Two Segments:
B2B ~ Garmenting & High Value Cotton Shirting
B2C ~ Branded Textile & Apparel
(This is what looks interesting)
Growth Drivers:
~ China/Bangladesh +1, FTA
~ Indian ethnic wear opportunity
~ Retail store expansion & premiumisation
~ Expanding new categories: Sleepwear & Innerwear
~ Expand garmenting capacity to 10+ Mn garments, Capex: ₹200 Cr
Targeting 15% CAGR in men's wedding market for 6-7% market share by 2027
650+ stores to be added by FY27
EBO Network: 900 (currently 409)
TRS (The Raymond Shop): 1,200 (currently 1,065)
Brands in menswear:
- Raymond, ColorPlus, Park Avenue, Parx
New Categories:
- Ethnix, Sleepz, Park Avenue Innerwear
Mcap: ₹14,500 Cr (CMP: ₹2,380)
Total EBITDA: ₹1,093 Cr
Net Cash Surplus: ₹227 Cr
Valuations: Reasonable
EV/EBITDA: 13x
If we compare with peers, valuations look very reasonable
Possibility of getting re rated in future
Do refer to the Investor PPT, very detailed
Only for study purposes
No reco
