 "Page Industries gains 8% on strong operational performance in March quarter")
Shares of Page Industries surged 8 per cent to Rs 45,176 on the BSE in Friday’s trade after the company reported strong performance in March quarter (Q4FY22). Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved by 470 basis points (bps) year on year (YoY) and 290 bps quarter on quarter (QoQ) at 24 per cent, on better operating efficiencies.
The stock of garments and apparels hit a 52-week high of Rs 46,705 on April 26, 2022. At 10:26 am; it traded 8 per cent higher at Rs 44,935, as compared to 0.55 per cent rise in the S&P BSE Sensex.
Meanwhile, the company’s reported profit after tax (PAT) jumped 64.9 per cent YoY to Rs 190.5 crore, on back of 37.2 per cent YoY increase in revenue at Rs 3,887 crore.
That apart, the company remains optimistic that all product categories and channels will continue to witness increasing trend and investments in leadership, product innovation, warehousing, technology and logistics support.
“The sales momentum has picked up significantly across all our product categories backed by expansion in our portfolio and existing network. We are well poised on a growth trajectory and remain optimistic on delivering sustainable growth over the long-term,” the management said.
Page Industries is the exclusive licensee of JOCKEY International Inc. (USA) to manufacture, distribute and market the JOCKEY® brand in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan and UAE. Page Industries is also the exclusive licensee of Speedo International to manufacture, market and distribute Speedo brand in India.
However, analysts at Motilal Oswal Financials maintain ‘neutral’ rating on the stock. They believe that the near-term challenges persist due to steep rise in yarn costs and high base for higher realization of Athleisure segment.
“After a few years of an earnings decline (-4.3 per cent PBT CAGR over FY18-21), its performance in FY22 has been encouraging, resulting in an improved outlook. RoCE also revived to over 50 per cent after 15 years, having dipped to the late 30s in recent years. Page Industries’ higher multiples will sustain, driven by healthy revenue and earnings visibility. However, valuations at 56x FY24E EPS are rich, which leads us to maintain our Neutral rating,” the brokerage firm added.
The stock of garments and apparels hit a 52-week high of Rs 46,705 on April 26, 2022. At 10:26 am; it traded 8 per cent higher at Rs 44,935, as compared to 0.55 per cent rise in the S&P BSE Sensex.
Meanwhile, the company’s reported profit after tax (PAT) jumped 64.9 per cent YoY to Rs 190.5 crore, on back of 37.2 per cent YoY increase in revenue at Rs 3,887 crore.
That apart, the company remains optimistic that all product categories and channels will continue to witness increasing trend and investments in leadership, product innovation, warehousing, technology and logistics support.
“The sales momentum has picked up significantly across all our product categories backed by expansion in our portfolio and existing network. We are well poised on a growth trajectory and remain optimistic on delivering sustainable growth over the long-term,” the management said.
Page Industries is the exclusive licensee of JOCKEY International Inc. (USA) to manufacture, distribute and market the JOCKEY® brand in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan and UAE. Page Industries is also the exclusive licensee of Speedo International to manufacture, market and distribute Speedo brand in India.
However, analysts at Motilal Oswal Financials maintain ‘neutral’ rating on the stock. They believe that the near-term challenges persist due to steep rise in yarn costs and high base for higher realization of Athleisure segment.
“After a few years of an earnings decline (-4.3 per cent PBT CAGR over FY18-21), its performance in FY22 has been encouraging, resulting in an improved outlook. RoCE also revived to over 50 per cent after 15 years, having dipped to the late 30s in recent years. Page Industries’ higher multiples will sustain, driven by healthy revenue and earnings visibility. However, valuations at 56x FY24E EPS are rich, which leads us to maintain our Neutral rating,” the brokerage firm added.
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