Dolat Capital Market recommended accumulate rating on Page Industries with a target price of Rs 24,082 in its research report dated November 12, 2020.
Dolat Capital Market's research report on Page Industries
Page Industries’ results were ahead of our estimates. The company reported 13.6% volume de-growth, primarily due to supply constraints during July. On MoM basis, sales improved gradually. The company achieved sales normalization in August and witnessed strong growth in September. Despite GM contraction, better operating efficiency and lower A&P spends helped EBITDA margins to expand by 310bps. Secondary demand was ahead of primary throughout the quarter, signifying steady increase in sales growth. Going ahead, we believe that the company’s focus to increase penetration, especially in the women and kid’s categories would help drive growth.
We have upward revised our EPS estimates for FY21E and FY22E at Rs 240 and Rs 388 respectively to factor in improvement in sales and expansion in margins. We have also introduced FY23E EPS estimate at Rs 463. We believe that the innerwear industry would witness pent up demand. Upgrade to Accumulate with TP of Rs 24,082 (52x FY22E EPS).
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