Raymond Lifestyle is expected to list in 2-3 weeks time. This division had an EBITDA of ~1150 crores last fiscal. While the margins are expected to improve as Ethinix brand grows, the overall revenue growth is nominal and not comparable with the likes of Trent, Aditya Birla Fashion etc (that sell multiple non-owned brands). We never know for sure as they seem to be focussing a lot in growth by increasing the garmenting capacity and adding some industry veterans to the board etc, the combined efforts of which might result in better topline growth.
Given this context, what is a reasonable valuation for Raymond Lifestyle in terms of EBITDA multiple?
Pls note that they are cash surplus but still may have working capital loans that might result in interest payments
| Subscribe To Our Free Newsletter |
