 "Page Industries hits 9-month low; down 10% in four days")
Shares of Page Industries were trading lower for the fourth straight day on Friday. The stock was down 4 per cent at Rs 22,550, hitting nine-month low on the BSE.
The stock of the Indian franchise and manufacturer of Jockey innerwear was trading at its lowest level since April 4, 2018. It has fallen 10 per cent in the first four trading days in January, as compared to a 1.4 per cent decline in the S&P BSE Sensex.
From its recent high of Rs 30,190 on November 9, the stock underperformed the market by falling 25% after reporting a lower-than-expected earnings in September quarter (Q2FY19). On comparison, the benchmark index was up 1% during the same period. It corrected 38% from its record high level of Rs 36,336 on August 28, 2018 on the BSE in intra-day trade.
Page Industries had posted net profit and revenues of Rs 93 crore and Rs 691 crore, respectively. Analysts on an average had expected a profit of Rs 114 crore and revenue of Rs 745 crore in Q2FY19. Ebitda (earnings before interest, tax, depreciation and amortization) margin declined sequentially to 20.7 per cent in Q2FY19 from 23.2 per cent in Q1FY19 and 24.1 per cent in Q4FY18.
The management had attributed weak performance owing to lower demand from retailers due to GST related issues and shift in festive season to Q3FY19.
“After delivering nine straight quarters of strong performance, PAG exhibited deceleration in earnings growth, part of which can be attributed to the timing mismatch of the festive season in FY19 compared to the previous year,” analysts at Motilal Oswal said.
The brokerage firm believes that slower-than-expected execution going forward can pose downside risks.
At 03:00 pm, Page Industries was trading 3.5% lower at Rs 22,774 on the BSE, as compared to 0.6% rise in the S&P BSE Sensex. A combined 66,109 equity shares changed hands on the counter on the BSE and NSE so far.
The stock of the Indian franchise and manufacturer of Jockey innerwear was trading at its lowest level since April 4, 2018. It has fallen 10 per cent in the first four trading days in January, as compared to a 1.4 per cent decline in the S&P BSE Sensex.
From its recent high of Rs 30,190 on November 9, the stock underperformed the market by falling 25% after reporting a lower-than-expected earnings in September quarter (Q2FY19). On comparison, the benchmark index was up 1% during the same period. It corrected 38% from its record high level of Rs 36,336 on August 28, 2018 on the BSE in intra-day trade.
Page Industries had posted net profit and revenues of Rs 93 crore and Rs 691 crore, respectively. Analysts on an average had expected a profit of Rs 114 crore and revenue of Rs 745 crore in Q2FY19. Ebitda (earnings before interest, tax, depreciation and amortization) margin declined sequentially to 20.7 per cent in Q2FY19 from 23.2 per cent in Q1FY19 and 24.1 per cent in Q4FY18.
The management had attributed weak performance owing to lower demand from retailers due to GST related issues and shift in festive season to Q3FY19.
“After delivering nine straight quarters of strong performance, PAG exhibited deceleration in earnings growth, part of which can be attributed to the timing mismatch of the festive season in FY19 compared to the previous year,” analysts at Motilal Oswal said.
The brokerage firm believes that slower-than-expected execution going forward can pose downside risks.
At 03:00 pm, Page Industries was trading 3.5% lower at Rs 22,774 on the BSE, as compared to 0.6% rise in the S&P BSE Sensex. A combined 66,109 equity shares changed hands on the counter on the BSE and NSE so far.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%