Raymond Lifestyle trades at 0.5x book as income grows 11% to ₹70.3bn, bets on Ethnix ethnic wear
Raymond Lifestyle posted FY26 total income of ₹70.3bn (+11%) and net profit of ₹1,750m (+21%) across 1,653 stores, with 1,109 under The Raymond Shop. It plans lean, profitable expansion of 30-40 net new stores in FY27 while scaling Ethnix (137 stores) toward a ₹5bn+ target. Stock sits below book value of ₹1,582.
What happened
Stock screen of five below-book-value Indian companies. Retail-relevant: Raymond Lifestyle grew income 11% to ₹70.3bn across 1,653 stores, targeting profitable
Key facts
- Raymond total income ₹70.3 bn FY26 (+11%)
- Raymond net profit ₹1,750 m (+21%)
- Raymond 1,653 stores, TRS 1,109 stores
- Raymond PB 0.5x, book value ₹1,582
- Ethnix 137 stores, ₹5+ bn target
- UFlex PB 0.4x
- net addition 30-40 stores FY27
Why this matters
The ethnic-wear push via Ethnix signals appetite for category-broadening deals or acquisitions to hit the ₹5bn+ target faster than organic store rollout allows.
What to watch
- Ethnix quarterly revenue run-rate vs ₹5bn target
- Net store additions pace and same-store sales growth
- Gross and EBITDA margin trend across FY27 quarters
- Wedding/festive-season discretionary apparel demand signals
- Any buyback or capital allocation move given sub-book valuation
- Accelerate Ethnix store rollout via asset-light franchise model to hit ₹5bn without heavy capex
- Rationalize underperforming Raymond Shop locations while adding 30-40 profitable net stores
- Communicate ROCE/margin roadmap to close the below-book valuation gap
- Push premiumization and garmenting mix to defend the +21% profit trajectory