Motilal Oswal research report on Page Industries
Page Industries (PAGE) reported 11% YoY sales growth in 4QFY25 (est. 8%; 7% in 3QFY25) and 9% volume growth (est. 6%; 5% in 3QFY25) to 49m units. Volume growth was driven by consistent efforts in product innovation, marketing and distribution. In our recent channel checks in the innerwear segment, we found positive trends for PAGE and men’s innerwear category in the last 60 days. Partial benefits were attributed to early Eid in 4Q (last year Eid was in 1QFY25). Growth was broad-based, with innerwear products slightly outperforming outerwear products.
Outlook
Inventory optimization through the ARS system, new product launches, capacity expansion, and digitalization initiatives will support growth. Benign input costs and cost efficiencies are likely to offset higher marketing/digital spending, which will help PAGE sustain its margin going forward. We believe the valuation will remain rich but have comfort in both growth acceleration and margin expansion in FY26. We reiterate our BUY rating on the stock with a TP of INR 57,500, premised on 65x P/E FY27E EPS.
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