July 10, 2024 / 10:29 AM IST
Sensex Today | Motilal Oswal retains ‘buy’ rating on Raymond
The SOTP-based model values the real estate business at 8x FY26E EV/EBITDA on embedded EBITDA, assuming pre-sales of Rs 40 billion and 25% EBITDA margin, and arrives at a valuation of Rs 80 billion (i.e., Rs 1200/share).
Broking House assigns a P/E of 20x on FY26E to the lifestyle business, arriving at a value of Rs 2,340/share (Rs 2,930 post demerger in RLL).
The engineering business is valued at 8x FY26E EV/EBITDA, arriving at a value of Rs 215/share. The combined value of the three businesses works out to be Rs 3,755/share.
Accordingly, MOST expect the per share value of company will be ~ Rs 1,415 (value of Rs 94 billion) after the record date (11 Jul’24), which includes Rs 1,200 of real estate
and Rs 215 of the engineering business.
The Lifestyle business could be listed at ~ Rs 2,930/share (20x FY26E EPS) and value of Rs 156 billion.
