Page Inds weaves smart gains after brokerage upgrade

Page Industries rose 3.28% to Rs 14,960 at 12:52 IST on BSE after a foreign broking firm upgraded the stock to neutral from underperform citing the company to be a beneficiary of GST rollout.

Meanwhile, the S&P BSE Sensex was down 111.57 points or 0.36% at 31,197.92.

On BSE, so far 26,000 shares were traded in the counter as against average daily volume of 1,156 shares in the past one quarter. The stock had hit a high of Rs 15,354.35 and a low of Rs 15,437.40 so far during the day. The stock had hit a record high of Rs 17,351.15 on 24 October 2016. The stock had hit a 52-week low of Rs 12,360 on 24 November 2016.

The stock had underperformed the market over the past one month till 5 June 2017, rising 1.97% compared with 4.86% rise in the Sensex. The scrip also underperformed the market in past one quarter, rising 1.15% as against Sensex's 7.97% rise. The scrip had also underperformed the market in past one year, gaining 3.84% as against Sensex's 16.92% rise.

The large-cap company has equity capital of Rs 11.15 crore. Face value per share is Rs 10.

A foreign broking firm reportedly raised its target price on the Page Industries stock to Rs 15,000 from Rs 12,800 a share. The brokerage expects the company to benefit from goods and services tax (GST) rate of 5% for apparel below Rs 1,000, represening a reduction of 3-4% compared to current taxation, as opposed to the risk of an increase, which was expected. The company is likely to pass on to customers the benefit from lower GST rate and gain market share, the brokerage said.

Further, the brokerage firm also highlighted that Page Industries had continued to do well even in the economic downturn and is positive on initiatives on more exclusive brand stores. The lower GST rates will also encourage the company to invest in new initiatives such as kids' innerwear, towels and new launches under leisurewear, it added. GST is likely to be implemented from 1 July 2017.

Page Industries' net profit rose 17.86% to Rs 66.79 crore on 14.87% growth in total income to Rs 509.17 crore in Q4 March 2017 over Q4 March 2016.

Page Industries is the exclusive licensee of JOCKEY International Inc. (USA) for manufacture and distribution of the JOCKEY brand innerwear/leisurewear for men and women in India, Sri Lanka, Bangladesh, Nepal and UAE. Page Industries is also the exclusive licensee of Speedo International for the manufacture, marketing and distribution of the Speedo brand in India.

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