Page Industries Ltd. share price target

Page Industries Ltd Q2FY18 results comment Revenue fell by 10.13% to Rs. 625.71 Cr in Q2FY18 when compared to the previous quarter. On the other hand, it increased by 17.09% when compared with Q2FY17.

ICICI Securities Ltd | Retail Equity Research Page Industries' Q2FY18 results were above our estimates across all the parameters. Page registered health topline growth of 17% YoY to | 625.7 crore (I-direct estimate: | 618.5 crore). Volume for the quarter grew 7.9% to 42.6 million pieces, well supported by 8.2% YoY growth in the blended realisation to | 145/piece. Following the 202 bps rise in COGS to Sales ratio, gross margins for the quarter softened to 57.6% as compared to 59.7% in Q2FY17....

PAGE's net sales grew at a strong 17.1% YoY to INR6.26b (est. of INR6.45b), with 7.9% YoY volume growth. Mix improvement was well ahead of expectation. Men's innerwear, Women's innerwear and Sportswear segments grew at 14%, 20% and 20% YoY, with volumes increasing 4%, 14% and 15% YoY, respectively. Speedo sales grew 27% YoY, with 7% YoY volume growth. Gross margin shrunk 200bp YoY to 57.6%. This was offset by lower employee costs (-90bp YoY) and other expenses (-160bp YoY), resulting in EBITDA margin expansion of 40bp YoY to 20.5% in 2QFY18. Thus, EBITDA grew at a healthy...

Revenue increased by 39.55% to Rs. 696.23 Cr in Q1FY18 when compared to the previous quarter. Revenue increased by 39.55% to Rs. 696.23 Cr in Q1FY18 when compared to the previous quarter.

Page registered robust topline growth of 22% YoY to | 696.9 crore (Idirect estimate: | 645.4 crore). Growth was driven by healthy volume growth of 13.3% to 46.4 million pieces with expansion in average realisation by 7.5% YoY to | 149/piece. Key growth drivers were the leisure, brassiere and women's segment wherein revenues grew 27.7%, 26.4% and 21.8%, respectively. Volumes for men's segment (56.6% of total volume) recorded 10.6% YoY growth to 26.3 million...

Despite demonetisation, Page Industries witnessed revenue growth of 18.7% YoY to ` 21,321mn in FY17. Implementation of GST will enable a shift from highly unorganized innerwear market leading to promising growth outlook for the organised market. Moreover, GST at 5% (for apparel below ` 1,000) is expected to have a positive impact on Page Industries' volume growth and market position since a majority of its products are priced below ` 1,000 per piece. Page Industries with its strong brand recall of Jockey is expected to lead the market shift towards organised and premium innerwear...

Q4FY17 sales grew 13% driven by 5% price hike and 8% volume growth. Gross margin improved 130 bps YoY, but OPM declined 110 bps YoY at 19.7% on higher staff costs and other expenses (each up 120 bps YoY). EBITDA grew 7% YoY. PAT grew 18% YoY on higher other income.

Revenue fell by 5.55% to Rs. 498.92 Cr in Q4FY17 when compared to the previous quarter.

Page Industries' Q4FY17 results were in line with our estimates on the revenue and EBITDA front. However, on account of higher other income, PAT came in above our estimates Page registered topline growth of 13.2% YoY to | 498.9 crore (I-direct estimate: | 497.5 crore). The growth was mainly supported by increase in revenue from the men's segment (up 17% YoY to | 232.5 crore). In value terms, women, brassiere and leisure segments reported YoY growth of 10.9%, 13.3% and 17.5%, respectively,...

A weak demand environment in the past two years slowed down growth (EPS CAGR of 17% over FY15-17 vs. 38% over FY10-15) and led to a two year consolidation in the stock. With no worthy competitor in sight, strong performance in women wear & leisure, and uptick in demand, we see >20% EPS CAGR over FY1..