Share Broker In Karur
Raymond Ltd BUY
Raymond’s has undertaken a series of strategic initiatives to chart out a course of sustained growth and improve profitability.
Steered by a recently inducted professional management at the helm, we expect revenues to grow at a CAGR of 11.7% to Rs. 7,463.3 crore by FY20.
High growth of the branded apparel segment is the primary driver, which in turn is supported by high advertisement & selling expenses for brand building.
As the brands sustain on their own, we expect advertisement & promotion spends to normalize
and the EBIDTA margins of this segment to improve gradually from the current meagre levels.
We expect the consolidated EBIDTA to grow at a CAGR of 28.4% to Rs. 644.7 crore by FY20.
While earnings growth is expected to witness a 81.2% CAGR over the same period Rs. 212.1 crore over the same period.
A turnaround of non-core assets, viz. tools & hardware and auto components, should be further growth drivers.
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