Raymond Lifestyle Ltd. got a ‘buy’ rating from Motilal Oswal Financial Services Ltd. as the brokerage initiated rating on the stock with a target price of Rs 3,200, implying an upside of 36%.

RLL, formed after a demerger of Raymond Ltd., has established itself as a significant player in the men’s wear sector, holding approximately 65% of the worsted suiting market. Its portfolio includes several recognised brands, such as Park Avenue, ColorPlus, and Ethnix by Raymond, catering to a diverse range of formal, casual, and ethnic apparel. The company also commands a 5% share of the men’s wedding wear industry, the note said.

Motilal Oswal anticipates growth for Raymond Lifestyle to stem from several strategic initiatives: expanding retail presence with plans to double exclusive brand outlets, capitalising on opportunities from Bangladesh +1 and China +1 B2B garmenting trends, launching new product categories like innerwear and sleepwear, and enhancing sourcing efficiencies.

Motilal Oswal forecasted for Raymond Lifestyle’s revenue growing at a compound annual growth rate of 11%, and profit after tax at a CAGR of 15% between fiscals ending March 2024 and March 2027. Its target price for the stock is based on a multiple of 30 times the estimated price-to-earnings for September 2026, equating to an implied 16 times EV/Ebitda.