RAYMONDLSL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 2.3

📊 Fundamental & Valuation Analysis

Raymond Lifestyle Ltd (RAYMONDLSL) has undergone significant restructuring, but its current financials and valuation metrics raise red flags for long-term investors.

🔍 Key Metrics Breakdown

Metric Value Interpretation

Market Cap ₹6,878 Cr Mid-cap, high volatility

Current Price ₹1,130 Near 52-week low

Book Value ₹1,574 P/B ~0.72 → Undervalued

Stock P/E 107 Extremely overvalued vs Industry PE (27.8)

ROE 0.67% Very weak return on equity

ROCE 2.87% Poor capital efficiency

Dividend Yield 0.00% No passive income

Debt-to-Equity 0.24 Low leverage, positive

PAT Qtr -₹44 Cr Loss-making quarter

EPS ₹6.27 Weak earnings base

PEG Ratio Not available No growth visibility

📉 Technical & Trend Analysis

RSI (43.6): Mildly oversold, but no strong reversal signal

MACD (-12.4): Bearish momentum

DMA 50 & 200: Price below both, indicating downtrend

Price Trend: Down ~64% from 52-week high of ₹3,100

✅ Long-Term Investment Outlook

Raymond Lifestyle is not a strong candidate for long-term investment at current levels due to

Poor profitability metrics (ROE, ROCE)

High valuation with negative earnings trend

No dividend payout

Weak institutional interest (FII/DII holding down)

However, the brand has legacy value and potential upside if turnaround strategies succeed.

🎯 Ideal Entry Price Zone

Based on valuation and technical support

Buy Zone: ₹950–₹1,050

Near 52-week low and below book value

Offers margin of safety if turnaround materializes

🧭 Exit Strategy (If You Already Hold)

If you're holding RAYMONDLSL

🔄 Short-Term Traders

Exit near ₹1,300–₹1,400, which is a resistance zone

Use trailing stop-loss below ₹1,100

🕰️ Long-Term Investors

Hold only if you believe in brand revival and restructuring

Reassess if ROE/ROCE don’t improve above 10% in next 2–3 quarters

Exit if price breaks below ₹950 with volume confirmation

⏳ Suggested Holding Period

Speculative Hold: 6–12 months

Long-Term Hold: Only if profitability metrics improve and losses reverse

Would you like a comparison with Raymond Ltd or other textile peers like Arvind or Aditya Birla Fashion?

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