Welspun Living, Raymond top picks amid export tailwinds: Jefferies

Jefferies has initiated coverage with a 'Buy' call for Welspun Living and Raymond Lifestyle.

India’s textile industry is seeing a fresh opportunity as global brands look to diversify sourcing beyond China, while new trade agreements improve the competitiveness of Indian exporters, global brokerage firm Jefferies said. 

 

Against this backdrop, Jefferies has given a ‘Buy’ call for Welspun Living and Raymond Lifestyle. Welspun is positioned to benefit from its scale and strong presence in home textiles, while Raymond Lifestyle offers exposure to branded textiles, apparel, and garment exports, the brokerage said.

 

Jefferies highlighted that the global textile & apparel market has exceeded $900 billion, with apparel contributing nearly 60 per cent of trade. “As sourcing shifts beyond China, India is well-positioned to gain share, supported by its integrated fibre-to-fashion ecosystem, $37 billion export base, raw material availability, skilled workforce, and policy support,” it said.

 

 

On the trade front, the brokerage highlighted that the UK FTA and a potential EU FTA from 2027 will provide India with preferential access to a $22 billion textile & apparel import market, where Bangladesh and other competing countries previously enjoyed tariff advantages.

 

“The UK FTA cuts tariffs on Indian textile products from 4-12 per cent to near-zero, while a potential EU agreement could remove similar duties, materially strengthening India's export competitiveness. Combined with China+1 sourcing, supplier consolidation, and Bangladesh's gradual loss of LDC-linked benefits, these agreements could drive meaningful market share gains for Indian exporters,” the brokerage said.

 

Against this backdrop, Jefferies has initiated Buy calls on Welspun Living and Raymond Lifestyle, citing improving growth prospects and attractive valuations.

 

Jefferies sees Welspun as a global home-textile leader with strong positions across bed & bath linen, flooring and rugs. It expects a 14 per cent revenue compound annual growth rate and 38 per cent Ebitda CAGR over FY26-29E, supported by margin recovery and improving industry dynamics. ROCE is expected to expand by around 13 percentage points to 19 per cent. The brokerage has given a target price of ₹260

 

Jefferies views Raymond Lifestyle as an attractive value play with turnaround potential, backed by premiumisation, apparel recovery and export-led garmenting growth. It expects a 23 per cent EPS CAGR over FY26-29E, while the stock’s ~6x one-year forward EV/Ebitda valuation appears attractive. The stock has received a target price of ₹900 from Jefferies. 

  

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