🧩 1. At a Glance
Raymond Lifestyle Ltd (RLL), the freshly listed fashion spin-off of Raymond Ltd, came in hot with a price near ₹3,100 post demerger hype. But now? It’s stitched itself into a ₹1,296 corset — a 60% drawdown that no amount of “Park Avenue” tailoring can hide. Amid resignations, margin slippage, and nose-diving profits, we ask: is this the beginning of a value unlock, or the unraveling of another classic Indian brand story?
🧨 2. Intro: From Ramp Walk to Hospital Gown 🩺
Back in FY24, Raymond pulled a classic Indian conglomerate trick — split the “lifestyle” stuff from the “real estate and engineering” stuff.
Investors lapped it up. “Finally,” they said, “a focused play on men’s formal fashion in an economy with weddings every weekend.”
But now? Sales are falling, profits are gasping, margins are in freefall, and the new listing is looking less like a luxury makeover and more like a budget TikTok hack gone wrong.
🏢 3. WTF Do They Even Do?
Raymond Lifestyle is basically a walking wardrobe:
👔 Branded Textiles
- The OG Raymond suiting & shirting
- Still the biggest player in worsted fabric
👕 Branded Apparel
- Park Avenue, Parx, ColorPlus, Ethnix
- Sold via MBOs, LFS, and ~1,600 exclusive Raymond stores
🧵 Garmenting (B2B export)
- Tailored suits, jackets for global clients
👗 High Value Cotton Shirting (B2B)
- Premium linen & cotton for designers and apparel houses
TL;DR: From wedding sherwanis to CEO suits to your dad’s Sunday linen, they do it all.
💰 4. Financials Overview – Profits, Margins, Growth, ROE
| Metric | FY24 | FY25 |
|---|---|---|
| Sales | ₹6,535 Cr | ₹6,177 Cr |
| Net Profit | ₹2,645 Cr* | ₹38 Cr |
| OPM | 14% | 8% |
| ROCE | — | 2.86% |
| ROE | — | 0.68% |
*FY24 profit is inflated by a ₹2,310 Cr one-time gain (likely asset transfer)
🧠 Real business earnings are basically flatlining. FY25 PBT dropped from ₹2,805 Cr → ₹60 Cr.
📊 5. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹1,296 |
| P/E | 121x (TTM, not adjusted for one-off) |
| Book Value | ₹1,574 |
| P/B | 0.84x ✅ |
| Market Cap | ₹7,895 Cr |
⚖️ Cheap on assets, but expensive on earnings. And with earnings declining, the stock might be… neither cheap nor cheerful.
🍿 6. What’s Cooking – Drama, News, and Management Musical Chairs
- 🪑 MD Sunil Kataria quit – effective March 2025
- 👨💼 CFO Sameer Shah resigned – effective July 31, 2025
- 🔐 Cybersecurity incident in Feb 2025 (lol what?)
- 📉 Q4 FY25 Net Profit: -₹45 Cr
- 🎙️ Concalls now sound like group therapy
And no, there’s no sign of dividend. Raymond Lifestyle isn’t returning any of its fashion money to shareholders.
🧾 7. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY24 | FY25 |
|---|---|---|
| Total Debt | ₹1,539 Cr | ₹2,288 Cr ❌ |
| Reserves | ₹9,661 Cr | ₹9,575 Cr |
| Total Assets | ₹13,836 Cr |
🔻 Debt jumped, reserves dropped, and liabilities up. This looks like a company that’s either funding working capital or just burning cash to survive post-demerger independence.
💵 8. Cash Flow – Sab Number Game Hai
| Metric | FY24 | FY25 |
|---|---|---|
| CFO | ₹38 Cr | ₹404 Cr |
| CFI | ₹1,305 Cr | -₹281 Cr |
| CFF | -₹1,403 Cr | ₹58 Cr |
| Net Cash Flow | -₹60 Cr | ₹182 Cr |
🔄 Good bounce-back in FY25 operating cash flow, but investments and borrowings are not creating value… yet.
📐 9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 2.86% 😩 |
| ROE | 0.68% 😵 |
| OPM | 8% 🔻 |
| Inventory Days | 231 😬 |
| CCC | 111 days 😐 |
📉 Every ratio screams retail struggles. High inventory, sluggish working capital cycle, and low efficiency across the board.
🧾 10. P&L Breakdown – Show Me the (Missing) Money
| Quarter | Sales | Net Profit |
|---|---|---|
| Q1 FY25 | ₹1,220 Cr | -₹23 Cr |
| Q2 FY25 | ₹1,708 Cr | ₹42 Cr |
| Q3 FY25 | ₹1,754 Cr | ₹64 Cr |
| Q4 FY25 | ₹1,494 Cr | -₹45 Cr |
Every quarter’s a mood swing. This business has the consistency of… well, Indian wedding season sales.
🆚 11. Peer Comparison – Who Else in the Game?
| Company | ROCE | OPM | P/E |
|---|---|---|---|
| KPR Mill | 19.8% | 19.5% | 50x |
| Trident | 9.5% | 13.0% | 43x |
| Welspun Living | 14.4% | 12.3% | 21x |
| Raymond Lifestyle | 2.86% | 7.6% | 121x ❌ |
Even with brand power, RLL is underperforming peers on every metric—margin, return, and valuation.
🧬 12. Miscellaneous – Promoter Moves & Shareholding Drama
- Promoters hold: 54.67%
- FIIs trimmed from 12.6% → 10.5%
- Public holding rising from 24.7% → 26.9%
- No promoter pledging reduction yet – 26.2% pledged
💡 Red flag: Management exits + pledged shares + falling earnings = not a cocktail for a luxury brand revival.
🧑⚖️ 13. EduInvesting Verdict™
Raymond Lifestyle had everything going for it:
- Premium brands ✔️
- Household legacy ✔️
- Post-demerger spotlight ✔️
But guess what?
👔 Fancy suits don’t pay the bills. Free cash flow, ROE, and margin do.
Until RLL shows that it can operate like a standalone, lean, profit-generating fashion powerhouse — and not just a corporate cosplay brand — this stock will stay stuck in wardrobe limbo.
🪡 Tailored for greatness, but stitched into a financial mess.
📌 Tags:
Raymond Lifestyle stock, Raymond spin-off, Park Avenue brand, ColorPlus, Raymond IPO analysis, fashion retail stock India, Raymond LSL demerger, RLL FY25 results, Raymond Lifestyle ROCE, management resignations
✍️ Written by Prashant | 📅 11 July 2025
