Moneycontrol
HomeNewsBusinessMoneycontrol ResearchIdeas for Profit | Leisurewear companies: Barring Page Industries, not much steam left in the short term
Trending Topics

Ideas for Profit | Leisurewear companies: Barring Page Industries, not much steam left in the short term

January 07, 2019 / 15:55 IST
Story continues below Advertisement

Your browser doesn't support HTML5 video.

Krishna Karwa Moneycontrol Research

 Highlights: Page Industries is our top pick Industry growth outlook remains promising Premium products to aid margins Focus is on strengthening multi-channel distribution Marketing spends will increase Working capital challenges may impact earnings

 --------------------------------------------------

Presence of retail channels pan-India, growing preference towards brands, increased awareness about hygiene, marketing and brand extension initiatives have helped innerwear and leisurewear stocks (ILCs) grow over the years. In this context, it is worth having a look at some of the country’s leading ILCs to determine the best investment proposition.

Story continues below Advertisement

Page Industries is our preferred pick owing to its strong execution capabilities and price correction in recent months. Dollar Industries and Rupa & Company, despite their undemanding valuations, are streamlining their working capital. This implies there could be better entry opportunities at a later stage, subject to how effectively their strategies pan out. Lux Industries’ heady valuations limits its upside potential as of now.

In Q2 FY19, Page Industries reported the most disappointing set of numbers, especially on the margin front.

Earnings snapshot