Buy Page Industries; target Rs 2615: Firstcall Research

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Buy Page Industries; target Rs 2615: Firstcall Research

Firstcall Research is bullish on Page Industries and has recommended buy rating on the stock with a target price of Rs 2615 in its December 20, 2011 research report.

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Firstcall Research is bullish on Page Industries and has recommended buy rating on the stock with a target price of Rs 2615 in its December 20, 2011 research report.

"Page Industries Limited engages in manufacturing, distributing, and marketing garments under the 'Jockey' brand name in India, Sri Lanka, Bangladesh, and Nepal. During the quarter ended, the robust growth of revenue is increased by 42.86% Rs.1805.98 million. Page Industries Ltd has declared of Interim Dividend of Rs. 12 per share on an equity share value of Rs. 10 each. Page Industries Ltd has entered into an exclusive licensing agreement with Speedo International Ltd. Net Sales and PAT of the company are expected to grow at a CAGR of 32% and 40% over 2010 to 2013E respectively."

"The company has posted a net profit of Rs 253.33 million for the quarter ended Sept. 30, 2011 as compared to Rs 163.60 million for the quarter ended Sept. 30, 2010, representing an increase of 54.85%. Net sales for the surged by 42.86% to Rs.1805.98 million from Rs.1264.15 million as compared to same quarter last year. Total income has increased from Rs 1,264.15 million for the quarter ended Sept. 30, 2010 to Rs 1,805.98 million for the quarter ended Sept. 30, 2011, representing an increase of 42.86%. The EPS of the company is stood at Rs.22.71 each share for the quarter ended Sep 2011."

"At the current market price of Rs.2315.10, the stock is trading at 32.75 x FY12E and 27.19 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.81.53 and Rs.98.18 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 32% and 40% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 16.99 x for FY12E and 14.25 x for FY13E. Price to Book Value of the stock is expected to be at 12.03 x and 7.96 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 2615 for Medium term investment," says Firstcall Research report.

FIIs holding more than 30% in Indian cos

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To read the full report click on the attachment