In our opinion, the current valuations provide for an attractive entry point for investing in the stock with a good risk-return profile over the next 2 years. We initiate coverage on RBL with a BUY for a price target of INR 256.2 (~1.0x FY25 P/B) which represents a potential upside of 70.8% from the CMP over the next 24 months

Proven track record of identifying high growth new product categories and successfully scaling them up

Unique play in the high growth US e-commerce market

We expect the stock of NCLI to get re-rated sharply given the improved visibility on revenue growth, profitability, future expansion plans

Strong revenue growth on the cards

Company will revert to its growth trajectory considering the strong revival in various capex programs & adoption of welfare schemes by the government

Strong demand from Global and Indian Denim industry

Growth continues to remain strong; Maintain buy

We believe that as India’s growth story takes off, IIB should continue to maintain its stratospheric growth rate over the forecast period FY17-20.

Structural shift in India’s competitive position; India gaining share in US home textiles market