RAYMONDLSL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.1

📊 Core Financials Analysis

Profitability

ROE: 0.50% and ROCE: 2.10% — extremely weak, indicating poor capital efficiency.

EPS: ₹2.18 — very low, with recent quarterly losses (−₹1.65 Cr) following a larger loss in the previous quarter (−₹62.7 Cr).

Despite a 93% improvement in quarterly profit, the company remains in negative territory.

Balance Sheet & Cash Flow

Debt-to-equity: 0.21 — low leverage, a positive for financial stability.

Dividend Yield: 0.00% — no dividends, suggesting reinvestment or cash conservation.

Cash flows are likely constrained due to ongoing losses and weak margins.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 120 Extremely overvalued vs industry PE of 23.0

P/B Ratio ~0.84 Undervalued on book value, but not justified by ROE

PEG Ratio 3.26 Overvalued relative to growth

Intrinsic Value ₹1,100–₹1,200 (est.) Current price ~10–15% above fair value

🧠 Business Model & Competitive Edge

Company Profile: Raymond Lifestyle Ltd is a consumer-facing business spun out of Raymond Ltd, focusing on apparel, grooming, and lifestyle products.

Strengths

Strong brand heritage and retail footprint.

Low debt and improving quarterly performance.

Challenges

Weak profitability and high valuation.

EPS and ROE remain subdued despite brand strength.

FII and DII holdings declined, signaling cautious institutional sentiment.

According to Simply Wall St, Raymond Lifestyle is forecast to grow earnings by 77.4% annually, with ROE expected to reach 6.9% in three years. However, it is currently considered 23–25% overvalued

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📈 Technical & Sentiment Overview

RSI: 62.1 — approaching overbought zone.

MACD: 45.6 — bullish momentum, but may be peaking.

DMA 50 & 200: Price between both — trend consolidation.

Volume: Below weekly average — cooling investor interest.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹1,100–₹1,200 — near intrinsic value and technical support.

Holding Strategy

Suitable for long-term investors betting on brand-led turnaround.

Price targets for FY27 range from ₹1,600 to ₹1,850; long-term targets for FY30 could reach ₹2,200+ if profitability improves.

Monitor margin expansion, retail growth, and execution of lifestyle strategy.

Raymond Lifestyle is a brand-rich but earnings-poor story at present. If you're comfortable with volatility and believe in its turnaround potential, a staggered entry near support levels may be worth considering. You can explore its live financials and analyst forecasts on Trendlyne’s RaymondLSL dashboard.

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