Jockey India licensee Page Ind drops 8% in 2 days; Should you buy or sell?

Page Industries, which licenses Jockey and Speedo products in India,  shares dropped 4.9 per cent on Thursday, logging an intraday low at Rs 43,526.25 per share on BSE. The stock declined over 8 per cent in two days after the company posted its Q3 results in market hours on Wednesday.

 

Around 11:30 AM, Page Industries share price was down 4.43 per cent at Rs 43,770.2 per share on BSE. In comparison, the BSE Sensex was down 0.38 per cent at 77,971.61. The market capitalisation of the company stood at Rs 48,820.73 crore. The 52-week high of the stock was at Rs 49,933.15 per share and the 52-week low was at Rs 33,100 per share.   Post the Q3 results, Motilal Oswal reiterated 'Buy' call on the stock with a target price of Rs 57,500, premised on 65x Dec’26E earnings per share (EPS).  In its report, the brokerage estimated a compound annual growth rate (CAGR) of 14 per cent/15 per cent/17 per cent in sales/Ebita/PAT over FY25-27E. Ebitda refers to Earnings before interest, tax, depreciation and amortisation (Ebitda) and PAT refers to profit after tax.   "Factors such as inventory optimisation through the ARS system, new product launches, capacity expansion, and digitalisation initiatives all support growth. Benign input costs and cost efficiencies are likely to lead to a better margin print. We believe the valuation will remain rich but have comfort in both growth and margin in the near term," the report read.   Nuvama Institutional Equities maintained 'Reduce' rating and raised the target price to Rs 43,456 per share as compared to Rs 42,803.   As per the brokerage, the company's top-line growth slowed in Q3FY25 after double-digit growth last quarter, reflecting muted post-festive season consumer sentiment across retail. Cost optimisation efforts, however, led to a further Ebitda margin improvement despite softer revenue growth. Key ask from the stock remained the double-digit top-line growth, which the stock used to report pre-Covid while this is the eighth straight quarter of slower growth excluding Q2FY25. 

 

Page Industries Q3 results

Page Industries reported a bigger-than-expected rise in its third-quarter profit to Rs 205 crore for the quarter ended December 31, 2024, compared with Rs 152 crore a year ago. 

 

The company's revenue from operations rose 7 per cent on-year to Rs 1,313 crore. The retailer said its earnings before interest, tax, depreciation and amortization (Ebitda) margin expanded to 23 per cent from 18.5 per cent a year ago, aided by a tight lid on operating expenses, while revenue growth remained consistent.

 

The Indian apparel retail sector confronts short-term headwinds due to dampened consumer sentiment, the company's filing read. 

 

It added: Nonetheless, long-term growth prospects remain robust, propelled by economic expansion, urbanisation, and rising disposable incomes. Athleisure and innerwear are poised as pivotal growth drivers, complemented by the proliferation of organised retail and e-commerce. 

Page Industries dividend 

The company's board approved third interim dividend of Rs. 150 per equity share. The record date fixed for the payment of interim dividend is February 13, 2025. The date fixed for payment of dividend is on or before March 7, 2025.

 

In the past one year, Page Industries shares have gained 26 per cent against Sensex's rise of 8.4 per cent.