Jefferies has initiated coverage on Welspun Living with a ‘Buy’ rating and a price target of ₹260 per share. The brokerage has assigned a ‘Buy’ rating to Raymond Lifestyle as well, with a target price of ₹900 per share.
Jefferies said India’s textile sector is entering a structural growth cycle, supported by the China+1 sourcing opportunity and improving tariff competitiveness following free trade agreements with the UK and the European Union.
Within the sector, Jefferies sees Welspun Living as a strong play on the global home-textile export opportunity, given its leadership position globally.
For Raymond Lifestyle, the brokerage sees an attractive risk-reward opportunity, supported by its leadership in branded textiles and the potential for a recovery in its apparel business.
For Welspun Living, Jefferies expects revenue to grow at a 14% CAGR over FY26-FY29E. Margin recovery is expected to drive EBITDA and PAT CAGRs of 38% and 71%, respectively, while ROCE is expected to expand by 13 percentage points to 19%.
For Raymond Lifestyle, Jefferies expects a 23% EPS CAGR over FY26-FY29E. The stock’s valuation at around 6x one-year forward EV/EBITDA also appears attractive, according to the brokerage.Analyst sentiment remains positive on both stocks. All 13 analysts tracking Welspun Living have a ‘Buy’ rating, while all four analysts covering Raymond Lifestyle have a ‘Buy’ call.
