Raymond Lifestyle shares surge 9%; what should investors do now?

Shares of Raymond Lifestyle Ltd -- the recently demerged retail and lifestyle arm of Raymond Ltd -- surged 9.03 per cent in Tuesday's trade, touching a day high of Rs 1,365.20. However, the stock later pared more than half of its gains and was last trading 3.79 per cent higher at Rs 1,299.60. Despite today's rise, the stock remains down 37.14 per cent so far in 2025.

A few analysts maintained a positive outlook on the stock, though one advised investors to consider booking profits at current levels.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said investors with a long-term view can continue with their positions in Raymond Lifestyle.

Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, suggested that the stock looked strong on charts and can hit an upside target of Rs 1,450 in the near term. He advised keeping a stop loss placed at Rs 1,250 for this trade.

According to Sebi-registered independent analyst AR Ramachandran, "Raymond Lifestyle is bullish but also overbought on daily charts with next resistance at Rs 1,412. Investors should be booking profits as a daily close below the support of Rs 1,209 could lead to a downward target of Rs 1,032 in the near term."

Raymond Lifestyle, backed by a legacy of well-known brands like Park Avenue, Raymond RTW, Parx and ColorPlus, currently has a relatively limited footprint with 463 exclusive brand outlets (EBOs), including Ethnix stores.

The company aims to ramp up its retail presence significantly, targeting 900 EBOs by FY27. This expansion is expected to be driven by the growth of brands like Park Avenue, ColorPlus and Ethnix, each of which is projected to scale up to around 300 stores across Tier-1 to Tier-4 cities.

As of March 2025, promoters held a 54.68 per cent stake in the company.