43405.0000 -165.00 (-0.38%)
NSE Sep 22, 2025 15:31 PM
Volume: 18,035
 

43405.00
-0.38%
Motilal Oswal
13 February 2020 PAG reported a disappointing set of numbers on both volumes and earnings, with EBITDA declining 16% YoY in 3QFY20. Reported operating margin was the lowest in 30 quarters, and adjusted for the Ind-AS 116 impact, the margin was among the lowest ever. While the long-term growth potential is high and the past track record impressive, valuations of 55.7x/47.6x FY21/22E EPS are expensive. Management commentary also did not assuage concerns about the lack of earnings recovery in the near term. Maintain 490bp YoY to 17.5% due to higher employee costs (+110bp YoY), partly offset by lower other expenses (-20bp YoY). Investments in technology implementation and staff recruitment (mainly on tech and kids businesses) have also impacted the EBITDA margin. Inventory days have come down to ~75 from 85 as of Mar19. Kidswear has shown an encouraging demand trend.
Page Industries Ltd. has an average target of 46727.17 from 6 brokers.
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