About the PE for fashion brands
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Companies like Trent & Aditya Birla Fashion keep acquiring new brands and keep growing them. Trent is particularly good at it and has very high PE, AB not that much
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Companies like Vedant Fashion is focusing on particular segment and goes very deep in it (wedding and festivity ethnic collections like Manyavar). Margins are very high in this and hence commands high PE
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Raymond has a mixed business on the lifestyle vertical
a. Core textile business
b. Few own brands (Raymond, Colorplus etc) and doesn’t add anything new (or add very rarely)
c. As mentioned above, the new brand they added is Ethnix and want to grow it like Manyavar of Vedant
How do you compare Raymond life style with that of companies mentioned above?
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