Page Industries: Muted earnings visibility, high valuation hurt sentiment

Muted earnings visibility is a key reason for the stock's decline

Page Industries’ management has highlighted the speedy recovery in business, with sales in August back to the year-ago level. This was despite the June quarter (Q1) being severely affected by the Covid-led disruption. Though the Street has, in many cases, responded well to positive management commentary on post-Covid recovery despite weak Q1 numbers, the story has been different for Page.

Consequently, the stock has slid 7 per cent since its results last Thursday — more than the 1.7 per cent decline in the Sensex during the same period.
 

Muted earnings visibility is a key factor behind the decline. Further, recent