Page Industries Ltd. share price target

In this report, we take stock of Page Industries’ (PAGE) last 5-year performance (compared to previous 5 years) vs peers (in the listed space). Key observations: (1) Innerwear industry underperformed NIFTY 50 during FY18-23 due to relative slowdown in the underlying business.

Jockey is the only top brand that competes in both men and women innerwear segment with same brand name (out of 208 brands, only 30 brands follow similar strategy – none of them are in top 10 list). We believe having specialist brand image is imperative to drive differentiation in women-wear segment.

Recommendation: With a 3% downside from the CMP, we maintain a HOLD rating on the stock.

4QFY23 print was significantly (~40%) below ours/consensus estimates led by general slowdown in the category, ARS (software implementation challenges) (this is likely to persist for two more quarters – and has been constant reason for underperformance since past few quarters) and negative operating leverage.

Page performance continues to be soft; impacted by high inventory in base, general slowdown and software implementation issue at MBO channel. Despite 13% YoY increase in total reach; 19% YoY rise in number of EBOs (~20% revenue share), 3% revenue growth implies meaningful decline in SSSG.

Recommendation With a 9% upside potential from the CMP, we maintain a HOLD rating on the stock.