Brokerages unimpressed with Page Industries Q1 show, no near-term growth catalysts

the apparel maker registered a four percent growth in net profit at Rs 165 crore.

Jockey-parent's earnings show for the quarter ended June left brokerages wanting, as profitability came in below expectations.

For the first quarter of the current financial year, the apparel maker registered a four percent growth in net profit at Rs 165 crore as against Rs 158 crore in the same period a year ago.

Page Industries posted a revenue growth of 3.9 percent to Rs 1,277.5 crore, as compared to Rs 1,229.1 crore in the first quarter of the previous financial year. Sales volumes rose around 2.6 percent on-year to clock in at 5.7 crore items, according to a regulatory filing.

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International brokerage Citi reiterated its sell call, as profitability and growth were weaker than its expectations. Citi remains cautious given the lack of near-term catalyst, specific initiatives to drive growth. However, the target price was bumped up to Rs 33,100 per share, trimming its FY25-27 EPS estimates by 0-4 percent.

Demand improved slightly in rural areas while e-commerce grew more than 30 percent. Margins fell to 19 percent due to increased marketing and tech spending. Q1 is seasonally a strong quarter for Page, and the current growth of 4 percent on a soft base leads us to build in a more delayed recovery, said Nuvama Institutional Equities.

The brokerage reiterated ‘reduce’ with a target price of Rs 33,226/share (Rs 34,029 earlier), implying a downside of 18 percent from current levels.

Motilal Oswal kept its neutral rating intact as the operating environment was stable in 1Q and largely consistent with previous quarters, with no significant improvement in consumption. The brokerage had a target price of Rs 38,000 apiece.

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