Jefferies starts Welspun Living and Raymond Lifestyle at Buy on India export opportunity
Jefferies set targets of Rs 260 for Welspun Living and Rs 900 for Raymond Lifestyle, implying 25% and 29% upside. The brokerage cites China+1 sourcing, potential UK/EU tariff tailwinds and export-led growth in home textiles and apparel.
What happened
Jefferies initiated Buy coverage on Welspun Living and Raymond Lifestyle, citing China+1 sourcing, prospective UK/EU tariff benefits and India’s export
Key facts
- Welspun Living target price: Rs 260
- Welspun Living CMP: Rs 208
- Welspun implied upside: 25%
- Raymond Lifestyle target price: Rs 900
- Raymond Lifestyle CMP: Rs 697
- Raymond implied upside: 29%
- Welspun revenue CAGR forecast: 14% for FY26-29E
- Welspun EBITDA CAGR forecast: 38% for FY26-29E
- Welspun PAT CAGR forecast: 71% for FY26-29E
- Welspun ROCE forecast: approximately 19%
- Raymond EPS CAGR forecast: 23% for FY26-29E
- Global textile and apparel market: over US$900 billion
- India textile export base: around US$37 billion
- UK and EU textile-apparel import market: around US$220 billion
Why this matters
The coverage reinforces India’s strategic position as an alternative textile sourcing base, potentially increasing the value of export partnerships, capacity investments and supply-chain alliances.
What to watch
- Sequential growth in export revenue and export order book over the next two to four quarters.
- Evidence of US and European retailer sourcing diversification away from China.
- UK/EU tariff-policy progress, free-trade-agreement milestones or changes in competing-country duty advantages.
- Gross-margin movement versus cotton, yarn, freight and INR/USD trends.
- Capacity-expansion announcements, utilization above prior levels and customer-qualification wins.
- Consumer-demand and inventory data from major US and European retail customers.
- Monitor management commentary on export order pipelines, new global-client wins and capacity utilization in upcoming results.
- Track UK-India and EU-India trade negotiations for tariff concessions affecting textiles and apparel.
- Watch for peer reratings and coverage activity across Indian textile exporters, especially companies with home-textile scale or apparel export exposure.
- Assess whether companies add export-focused capacity, deepen retailer partnerships or shift product mix toward higher-margin branded and value-added categories.