Mumbai: The stock of apparel company Raymond soared 9.4% to record highs on Tuesday after broking firms Jefferies and Motilal Oswal Financial Services initiated coverage with ‘buy’ ratings.
Both firms have set a price target of ₹2,600, implying an upside of nearly 20% from Tuesday’s closing price of ₹2,169.90. Earlier in the day, the stock hit an all-time high of ₹2,240. It has risen by 44.32% in 2023 so far as against 10.65% advance in the benchmark S&P BSE 500.
Jefferies
Seen significant turnaround in profitability and balance sheet quality in the past three years.
With an expected pick-up in revenue growth, healthy earnings growth is also likely.
Earnings growth could drive re-rating especially with the de-merger of the lifestyle business.
Agencies
Motilal Oswal
Sale of consumer business, hiving off of lifestyle unit and cash infusion by promoters key drivers.
Despite stock doubling in the past year, valuations at a P-E of 15 times lower than other retail discretionary companies – 40-50 times.
Real estate will be a key growth driver for the company.
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Agencies