Raymond Lifestyle shares rally 3% as Motilal Oswal predicts 29% upside
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Raymond Lifestyle (RLL) shares surged by 3.4% today to their high of Rs 2,089 on the BSE following an optimistic outlook from domestic brokerage firm Motilal Oswal, which projects a 29% upside potential in the stock as it gave a target price of Rs 3,000. The brokerage's confidence stems from RLL's renewed focus on growth and disciplined working capital management, which could drive a significant valuation re-rating in the medium term. “While RLL benefits from strong brand affinity, its valuation has been impeded by sluggish execution in the past (volatility in PAT growth over FY10-20). However, RLL’s renewed focus on growth, along with working capital discipline, could lead to a valuation re-rating over the medium term,” said Motilal Oswal in its report. The domestic brokerage firm believes that a growth recovery in the branded apparel segment, the scale-up of newer categories like sleepwear and innerwear, and the successful execu...