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Page Industries hits 9-month low; down 10% in four days

The stock was trading lower for the fourth straight day, down 4 per cent at Rs 22,550 on the BSE, its lowest level since April 4, 2018.

SI Reporter  |  Mumbai 

Photo: iStock
Photo: iStock

Shares of 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 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.

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, 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.

First Published: Fri, January 04 2019. 15:03 IST