ICICI Securities initiates coverage of Raymond with "hold"

Raymond

20/11/2023 09:54

** ICICI Securities beings coverage of Raymond  RYMD.NS 
with "hold" rating and PT at 1,860 rupees - a 4.4% premium to
its last close
    ** Shares of the textiles maker down 1.2% at 1,761 rupees as
of 3:19 p.m. IST
    ** ICICI says it models co's revenue/EBITDA/PAT CAGR at
11%/12%/20% respectively over FY23-FY25
    ** Expect ~7% revenue CAGR for RYMD's flagship business -
branded textile - which accounted for 40.4% of co's FY23
consolidated revenue - ICICI
    ** Adds revenue in branded apparels segment likely to grow
at 17% CAGR driven by retail expansion and higher thrust on
casualization
    ** Revenue from garmenting segment to grow at 10% CAGR led
by adoption of "China +1 strategy" by global brands - ICICI
    ** Engineering division's revenue is expected to grow at 12%
CAGR as co plans to expand capacity - ICICI
    ** Stock up ~20% YTD

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))