Page Industries Ltd. share price target

After a subdued performance in Q2FY19, green shoots were visible with Page registering revenue growth of 19% YoY to | 738.3 crore in Q3FY19. However, adjusting for the Ind AS-115 accounting change, revenue growth came in at 14% YoY. The growth was led by volume growth of 12% to 44.5 million pieces (highest growth in last six quarters) while realisations improved 5% YoY to | 163/piece Gross margin rose 153 bps YoY to 57.1% while EBITDA margins grew 163 bps YoY to 22.4% (I-direct estimate: 21.5%). Absolute EBITDA...

14 February 2019 volume growth of ~12% YoY. In our view and like we also mentioned in our 3QFY19 preview report the company is likely to have benefited from the INR1.53b), while adj. PAT increased 22.2% YoY to INR1b (in-line). EBITDA margin expanded 160bp YoY to 22.4%, led by lower employee costs (-30bp YoY to 15.8% of sales), partly offset by higher other expenses (+20bp YoY to 18.9%). PAT grew 15.5%, 26.1% and 26%, respectively. Overall volumes grew ~7% on a YTD basis.

But, channel issues could lead to moderate near-term volumes We met Mr. Sunder Genomal (MD), Mr. Vedji Ticku (CEO) and Mr. Chandrasekhar (CFO) of Page Industries (PAG). Key takeaways: Structural opportunity remains extremely strong Industry data suggests that 130m adults in India can afford Jockey products (SEC A+, SEC A and part of B). Considering the company's current volumes and assuming five pieces per person annually, then of 130m people currently only 20% men and 6% women are existing Jockey consumers. The target market of...

Mens innerwear, womens innerwear and sportswear segments grew by 6.3%, 11.2% and 17.5% YoY, respectively. Volumes in mens innerwear segment declined by 3.2% YoY, while those in womens innerwear and sportswear segments increased by 3.9% and 6.1% YoY, respectively. PAT grew 13.9%, 25.4% and 28.3% YoY, respectively. EBITDA margin expanded 200bp YoY to 20.

Revenue trajectory decelerated for the quarter with Page reporting one of its lowest ever sales growth of 10% YoY to | 690.8 crore. Revenue growth was driven by only realisation growth of 10.1% YoY to...

Page Industries' reported a flat volume growth as the quarter witnessed unfavorable base due to shift in festive season. Consequently, the sales growth came below our estimate. Nevertheless, volume growth in Q3 is expected to recover completely driven by favorable working conditions for the company. Though operational performance during the quarter came below our estimate, we believe that recent price hikes and revamp in volume growth would help the margins to improve in the ensuing quarters. We continue to believe that the company has strong brand recognition...

Page Industries continued its stellar run with results coming in above our estimates across all parameters Revenues grew robustly by 17% YoY to | 815.3 crore (I-direct estimate: | 805.2 crore). Revenue growth was driven by volume...

9 August 2018 to INR8.2b (est. Overall volume growth stood at 9% YoY for 1QFY19. Mens Innerwear, womens innerwear and sportswear segments grew by 16%, 14% and 21% YoY, led by volume growth of 6.2%, 6.7% and 18.3% YoY, respectively. (+38.6% YoY to INR1.9b v/s est.

Page Industries, also known as Jockey India, is a publicly listed company which is the licensee of Jockey International and Speedo in India and Sri Lanka.

PAG's structural story remains attractive with the management targeting 20%revenue growth over the long term. Initiatives like outsourcing and EBO expansion are likely to facilitate faster growth and superior asset turns. In fact, as the annual report reveals, inventory days have already declined sharply from 100 days in FY17 to 85 days in FY18. Increased focus on technology implementation across the distribution channel should also ensure better efficiencies and decision making, and higher asset turns. Extension of the Jockey franchise agreement to the year 2040 (from 2030 earlier)and continuance of royalty at 5% (announced last month) provides comfort