You are here: Home » Markets » News
Business Standard

Page Industries hits new high; stock up 20% in six days post Q2 earnings

The stock hit new high of Rs 24,678, up 8% on the BSE in early morning deal, gaining 20% or Rs 4,098 in past six trading sessions.

SI Reporter  |  Mumbai 

Page Industries hits new high; stock up 20% in six days post Q2 earnings

hits new high of Rs 24,678, up 8% on the BSE in early morning deal, gaining 20% or Rs 4,098 in the past six trading sessions after the company reported financial results for the quarter ended September 2017 (Q2FY18). The stock hit a record high of Rs 24,691 on the National Stock Exchange (NSE) in intra-day trade.

The company engaged in the business of manufacturing, distribution and marketing of garments posted 22% year on year (y-o-y) growth in net profit at Rs 84 crore in Q2FY18. It had reported profit of Rs 69 crore in the same quarter last fiscal year.

Revenues from operations during the quarter grew 17% at Rs 626 crore against Rs 535 crore in the corresponding quarter of previous year.

Analysts at Emkay Global Financial Services maintain ‘hold’ rating on the stock as it expects sustained growth in the existing portfolio, continuous innovation in category extension and capacity extension (from 260 million pieces to 400 million pieces in 4 years) is likely to drive 19% growth in the medium term.

Furthermore, successful foray into the kids wear is expected to further boost the growth. Kidswear (boy’s wear) launched in June has seen good initial response, and the company plans on launching girl’s wear in Jan’18. Page has a dedicated sales team to drive growth of this segment, the brokerage firm said in result update.

“Over the years, Page has constantly delivered strong performance, depicting the fundamental strength of the company. It has a healthy balance sheet with robust cash flow from operations and Debt/Equity ratio comfortably placed at 0.2x. We expect to continue on its strong trajectory with revenue and earnings expected to grow at a CAGR of 24% and 29% respectively,” analysts at ICICI Securities said in result update and maintain ‘hold’ rating on the stock.

however, is trading above brokerages target price of Rs 23,300 and Rs 22,920 respectively.

At 09:17 AM; the stock was trading 6% higher at Rs 24,374 on the BSE, as compared to 0.57% rise in the S&P BSE Sensex. A combined 38,424 shares changed hands on the counter on the NSE and BSE.

First Published: Thu, November 16 2017. 10:21 IST
RECOMMENDED FOR YOU