Valuations cap upside in Page Industries, near-term headwinds a concern

Return to double-digit trajectory and expansion are positives from the medium term perspective

Led by strong demand in the athleisure segment, Page Industries posted better than expected revenue growth performance in the March quarter. Revenues were up 63 per cent on the back of a 52 per cent jump in volumes on a soft base.

In addition to demand, expansion of its network too was healthy. While multi-brand outlet (MBO) additions were up 18 per cent, the company added 180 exclusive brand outlets or EBOs (up 29 per cent) in FY21. The company is looking at a 8-10 per cent annual expansion in distribution over the next ten years.

Commenting on the sales