Buy Page Industries; target of Rs 35000: Dolat Capital
Dolat Capital is bullish on Page Industries has recommended buy rating on the stock with a target price of Rs 35000 in its research report dated November 14, 2018.
November 19, 2018 / 04:01 PM IST
Dolat Capital's research report on Page Industries
Page Industries’ reported a flat volume growth as the quarter witnessed unfavorable base due to shift in festive season. Consequently, the sales growth came below our estimate. Nevertheless, volume growth in Q3 is expected to recover completely driven by favorable working conditions for the company. Though operational performance during the quarter came below our estimate, we believe that recent price hikes and revamp in volume growth would help the margins to improve in the ensuing quarters. We continue to believe that the company has strong brand recognition which would help it to maintain strong volume growth in the long run. In addition, with the changing economy, branded innerwear market would continue to report double-digit volume growth and Page will enhance the most, being a leader in the category. Considering leadership in the premium segment we do not see price pass on as a challenge to mitigate inflation. We have maintained our est.
Maintain BUY with a TP of ` 35,000. Considering niche play in the high growth category, we believe that the stock would continue to attract premium valuation.
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