Raymond Lifestyle Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹577.60+₹6.65 (+1.16%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Raymond Lifestyle Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Raymond Lifestyle Limited manufactures and sells branded apparel in India.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees15,258

Annual revenue₹6,820 Cr

How does it make money?

Turns over ₹6,820 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 15,258 employees supports ₹44.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹44.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 9.7% and earnings to grow about 50.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.7%

Est. earnings growth+50.0%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +5220% while net margin moved -98% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+5220%

Margin effect-98%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 2.8% is below 10% — capital is not working hard
✗ ROCE has fallen by 19.8 points — returns are eroding
✗ EBITDA margin of 11.0% is thin — little cushion if costs rise
✗ Net margin of 0.6% is slim
• Revenue has compounded at 276.1% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

55/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

81.1x

2Y Median

84.6x

27 monthly readings · mean 80.1x · range 2.2x–188.6x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 84.6x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 17% above the peer median of 69.2x.

vs. its own history

Fair

84.6x median over 27 months · -4%

vs. sector peers

Fair

69.2x median of 4 peers · +17%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

7.3x

PEG

9.40

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 10859% over 3 years.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 25.6% to 0.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.6% to 2.8% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 48365% over 3 years, from ₹5 Cr to ₹2,186 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 17.0 points, from 28.0% to 11.0%.
🔴Receivables growing faster than salesFinancial
Receivables up 15123% against revenue up 5220% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 21645% against revenue up 5220% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹358 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 28.0% to 11.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 15123% against revenue up 5220%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 25.6% to 0.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 207% a year✓ 276.1% CAGR
Latest reported year was 5.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹358 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹3,518 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

81.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.12

Profitable

Profitable on a per-share basis

ROE

0.5%

Weak

Weak capital efficiency

ROCE

2.8%

Weak

Low return on total capital employed

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

5.9%

Modest

Modest growth

Profit Growth (YoY)

20.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.17%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹358 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

13.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

-1.3%

Weak

Thin margins leave little room for error

Net Margin

0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

628.5 / 672.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

15.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹128 Cr	₹6,493 Cr	₹6,126 Cr	₹6,820 Cr	+276.1%
EBITDA	₹36 Cr	₹1,077 Cr	₹623 Cr	₹749 Cr	+175.4%
EBITDA Margin	28.0%	16.6%	10.2%	11.0%	—
PAT (Net Profit)	₹36 Cr	₹2,645 Cr	₹38 Cr	₹46 Cr	+8.6%
EPS	₹5.91	₹434.1	₹6.27	₹7.59	+8.7%
ROE	25.6%	27.4%	0.4%	0.5%	—
ROCE	22.6%	7.9%	2.4%	2.8%	—
Total Debt	₹5 Cr	₹1,540 Cr	₹2,291 Cr	₹2,186 Cr	+685.5%
Free Cash Flow	₹3 Cr	-₹116 Cr	₹185 Cr	₹358 Cr	+378.6%

🟢 Revenue has grown at 276.1% a year over 3 years.

🟢 EBITDA has grown at 175.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 28.0% to 11.0% over 3 years (-17.0 pts).

🟢 PAT (Net Profit) has grown at 8.6% a year over 3 years.

🟢 EPS has grown at 8.7% a year over 3 years.

🔴 ROE has fallen from 25.6% to 0.5% over 3 years (-25.1 pts).

🔴 ROCE has fallen from 22.6% to 2.8% over 3 years (-19.8 pts).

🔴 Total Debt has grown at 685.5% a year over 3 years.

🟢 Free Cash Flow has grown at 378.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,997 Cr

Total Liabilities

₹4,361 Cr

Cash & Equivalents

₹236 Cr

Operating Cash Flow

₹543 Cr

Capex

-₹184 Cr

Shareholding (proxy)

Institutional Holding

7.3%

Insider Holding

65.2%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

29 Jun 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹904

+56.5% vs CMP

Target Range

₹800 – ₹1,012

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

Raymond Lifestyle Q1 Results: Revenue Rises to ₹15.2B, Net Loss Widens YoY

scanx.trade, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Raymond Lifestyle Stock Signals to Watch This Week

Univest, 24 Sept

How Raymond’s Demerger Unlocked Value for Investors

HDFC Sky, 06 Oct

Compare with

Equitymaster, 13 Oct

RAYMONDLSL Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Raymond Lifestyle Ltd Extends Losing Streak to Three Sessions, Touches All-Time Low

MarketsMojo, 09 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 5 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑