Hi Rahul, I have looked at this in detail and my process says an initial buying point at 1800 given the kind of one offs and other margins pressures we have seen in Q2.
What I get the feedback on possible q3 is, sales are coming from value side of retail garmenting. Even wedding wears which were getting very expensive, people are trying to buy lower priced wedding wears. Ofcourse there are many levers in RLL, but I see some dent in margins in q3, q4 and hence lower EBITDA etc will lead to first entry point of 1800, and then onwards it starts becoming a value buy with a longer term prospective of getting a good value on all the business verticles. Let's hope for the best. Disclaimer:jin my tracking list, not invested.
So Q2 hasnt been good for them, Vedant and some others have done better. Would that have any impact on your thesis? Wanted to understand how do you think about these variations and incorporate them in your analysis and valuation?
Hi, Its too soon to judge BUT I do think that valuations are reasonable, they're not very attractive. In my estimate a Market cap of 8-10K cr would offer a better margin of safety. But yes, a bit soon to judge given their efforts would yield results slowly. My Allocation is also small as indicated in the article, in line with this view. On the other hand, I missed out on analysing comparable players such as Siyaram Silk so it's always a function of what alternatives are available.
Hi Rahul, I have looked at this in detail and my process says an initial buying point at 1800 given the kind of one offs and other margins pressures we have seen in Q2.
What I get the feedback on possible q3 is, sales are coming from value side of retail garmenting. Even wedding wears which were getting very expensive, people are trying to buy lower priced wedding wears. Ofcourse there are many levers in RLL, but I see some dent in margins in q3, q4 and hence lower EBITDA etc will lead to first entry point of 1800, and then onwards it starts becoming a value buy with a longer term prospective of getting a good value on all the business verticles. Let's hope for the best. Disclaimer:jin my tracking list, not invested.
Thank you for the perspective sir 🙏🏽
Coming near first entry point :)
So Q2 hasnt been good for them, Vedant and some others have done better. Would that have any impact on your thesis? Wanted to understand how do you think about these variations and incorporate them in your analysis and valuation?
Hi, Its too soon to judge BUT I do think that valuations are reasonable, they're not very attractive. In my estimate a Market cap of 8-10K cr would offer a better margin of safety. But yes, a bit soon to judge given their efforts would yield results slowly. My Allocation is also small as indicated in the article, in line with this view. On the other hand, I missed out on analysing comparable players such as Siyaram Silk so it's always a function of what alternatives are available.
Hello Rahul! Do you have any updates/ new insights into Raymond Lifestyle?