Shift from Thane to Vapi is a big trigger for Raymond Woollen: Prabhudas Lilladher

Amisha Vora, Joint MD, Prabhudas Lilladher in an interview with ET Now talks about Monnet Ispat.

What triggers are you seeing in Raymond Woollen?

Of course, the basic story continues to remain that in the woollen fabric they have 65% market share. They did go through a bad patch with their expansion in Denim which they are curtailing. That has brought their losses down, but I think a very big trigger will continue to be that they have shifted from Thane to Vapi.

They have doubled their entire fabric manufacturing capacity, but they have still to negotiate with the workers here at Thane whereby they will stop incurring 60-65 crore of revenue expenses which they are incurring at the moment.

This will also free land with them when they develop, will generate extra revenue but still on core fundamentals we expect that the company is heading to about something like 350 to 400 crore of EBITDA and 9200 crore net profit and compared to that the current market gap of 1500 crore with the branded business is very reasonable.