Page Industries gains 3% after it extends license agreement with Jockey International

Shares of Page Industries gained over 3 percent in the morning trade on Wednesday as investors bet on the firm’s extension of licensing with Jockey International.

“Our license agreement with Jockey International Inc has been extended till December 31, 2040,” the company said in a filing to the exchanges.

The stock was in the news recently for its performance during the March quarter. The firm registered 41 percent jump in its March quarter (Q4FY18) to Rs 94.2 crore against Rs 66.8 crore in the same period last year.

Revenue of the company was up 22.3 percent at Rs 608.4 crore against Rs 497.3 crore.

The operating profit or EBITDA rose 51 percent at RS 146.8 crore and margin rose 450 bps at 24.1 percent. The company board declared fourth interim dividend of Rs 35 per equity share for 2017-18.

Based on the numbers, Credit Suisse maintained an 'underperform' rating on the stock. However, it has raised its price target on it to Rs 21,300 from Rs 20,000 earlier.

The research firm said it continues to like the "structural story" of the company, driven by a gain in market share. However, it iterated that stock's valuation appears stretched. Page Industries is currently trading at 53 times its estimated earnings for FY20, with its growth nowhere near its heyday of FY10-15.

The stock has gained 5 percent in the past one month, while its three-day gain stood at 3 percent. At 09:31 hrs Page Industries was quoting at Rs 25,275.65, up Rs 599.50, or 2.43 percent, on the BSE. It touched an intraday high of Rs 25,480.00 and an intraday low of Rs 25,190.00.