Page Industries Ltd. share price target

We maintain HOLD with a revised TP of Rs 44,500 (vs TP Rs 44,250 earlier) on the back of robust distribution expansion, penetration in T3/T4 cities and healthy operating performance.

However, EBITDA margin declined by 332bps YoY to 21.1% on account of higher raw material prices and other expenses. The company has taken a price hike of 8% in December January period to offset the impact of rising input price and expect the margins to stabilize in the range of 20% to 21%. The current capacity utilisation is at 80% and the company is...

Background: Page Industries is the exclusive licensee of Jockey International Inc (USA) to manufacture and distribute Jockey brand in India, Sri Lanka, Nepal, Bangladesh and UAE till 2040. They broadly operate in premium men's innerwear; women's innerwear and leisure wear segments. Jockey enjoys high brand recall and they spend ~5% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. They are also exclusive licensee of Speedo swimwear brand in India. Page has network in ~250 cities and ~760 exclusive brand outlets in India. They...

With a strong outlook going ahead, we advise HOLD with a TP of Rs. 44,250 (same as earlier) on the back of robust distribution expanison, penetration in T3/T4 cities & healthy operating performance.

This results in a rating revision to BUY (HOLD earlier). We raise TP to Rs. 44,250 (Rs.32,800 earlier) as we roll forward to Sept '23 earnings.

Tracking healthy operational performance, PAT grew 45% YoY to | 160.5 crore. Liquidity positon remains robust with cash worth | 536 crore What should investors do? Page's share price has grown by ~3x over the past...

Background: Page Industries is the exclusive licensee of Jockey International Inc (USA) to manufacture and distribute Jockey brand in India, Sri Lanka, Nepal, Bangladesh and UAE till 2040. They broadly operate in premium men's innerwear; women's innerwear and leisure wear segments. Jockey enjoys high brand recall and they spend ~5% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. They are also exclusive licensee of Speedo swimwear brand in India. Page has network in ~250 cities and ~760 exclusive brand outlets in India. They...

Background: Page Industries is the exclusive licensee of Jockey International Inc (USA) to manufacture and distribute Jockey brand in India, Sri Lanka, Nepal, Bangladesh and UAE till 2040. They broadly operate in premium men's innerwear; women's innerwear and leisure wear segments. Jockey enjoys high brand recall and they spend ~5% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. They are also exclusive licensee of Speedo swimwear brand in India. Page has network in ~250 cities and ~760 exclusive brand outlets in India. They...

Gross margin improved by 963bps YoY to 57.7% on account of better product mix while EBITDA margin came in at 6.8% owing to unabsorbed fixed overheads. Weak operating margin and fall in other income restrict earnings to grew to Rs11cr (Vs. Rs40cr loss in Q1FY21). The company indicated that the demand has been strong in June & July and more than 50% of multi brand outlet (MBO) is operational which provides impetus to the revenue recovery....