Interestingly, comparing it to Vedant fashion (sorry, may not be apple to apple), the lifystyle apparel business of Raymond(I have extrapolated from avalaible last 2-3 qrtr) does a 3.7cr per store compared to Vedant fashion. However the profitibility looks way different. for any investor , its important that the business is disciplined , efficient, and and generates returns and has simple balance sheet structure.
| Apparel_revenue_Cr | Apparel_EBITDA | No_of_stores | Per_store_AR_cr | Per_store_OP_cr | |
|---|---|---|---|---|---|
| Raymond | 5500 | 850 | 1500 | 3.7 | 0.6 |
| Vedant | 1350 | 655 | 670 | 2.0 | 1.0 |
Also, there was a question in last concall about the ebitda of real eastate business. The management answer was, around 25%, considering it builds on its own land and at an avg rs 20k a sqrft, its too low , compared to something like Oberoy Realty which does EBITDA of 50%
Even though it looks undervalued, but in my opinion economics and efficiency of the company is subpar …I hope restructuring and reorganaising playout, however, from the call it didnt sound like the company is emerging stronger very soon.