Apparel player Page Industries Ltd. shares fell 3 percent in early trade on February 6, after the makers and distributors of Jockey in India reported a solid growth in net profit for the quarter ended December, 2024. Brokerages remained mixed on their outlook for the company.
Page Industries reported a 34.3 percent growth on-year in its third quarter profit at Rs 204.7 crore, with revenue growing by 7.1 percent on year to Rs 1,313 crore. EBITDA grew by 33.6 percent YoY to Rs 302 crore, said the company.
In its presentation on Q3FY25, Page Industries acknowledged that the Indian apparel retail is undergoing 'short-term headwinds' due to dampened consumer sentiment. The apparel maker said the operating environment continued to be affected by subdued demand, and the festive demand seen in the beginning of Q3FY25 'was not sustained subsequently'.
"Nonetheless, long-term growth prospects remain robust, propelled by economic expansion, urbanization, and rising disposable incomes," the company said in the exchange filing.
At 9.16 am, Page Industries shares were trading at Rs 44,388.95 per share, lower by 3.06 percent on the NSE.
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Global brokerage Morgan Stanley maintained its 'overweight' stance, with a target price Rs 45,400 per share even as it noted that the management gave off mixed signals in the earnings call for the quarter. Demand was subdued in Q3 and remains weak in Q4, while rural (tier-3 and 4 cities) were performing better than urban (tier-1 and 2 cities).
However, the premiumization theme across categories is performing well. The brokerage is confident about medium-term growth, but near-term revival depends on macro situation.
On the flip side, Macquarie reiterated its 'underperform' on Page Industries, with a target price of Rs 36,000 apiece. The brokerage expects a gradual recovery for the firm FY26 onwards.
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