Buy Page Industries; target of Rs 57,500: Motilal Oswal

Motilal Oswal is bullish on Page Industries recommended buy rating on the stock with a target price of Rs 57,500 in its research report dated January 08, 2025.

Broker Research

January 09, 2025 / 12:49 IST

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Motilal Oswal's research report on Page Industries

PAGE Industries (PAGE) is well-positioned to capitalize on India's growing innerwear (9% of the apparel industry) and athleisure markets, aided by favorable macroeconomic trends such as rising incomes, urbanization, and a young population. The company holds a dominant position in the mid-premium innerwear segment, driven by its first-mover advantage, strong brand equity of Jockey, low-cost manufacturing, and a well-diversified product portfolio. The company’s moat revolves around its strong in-house manufacturing (~80%) across 16 units, producing 280m pieces annually. Its distribution network spans 2,710+ cities, 1,07,702 MBOs, and 1,387 EBOs, with focused expansion strategies and a strong online presence (41% growth in 1HFY25). The company is focusing on expanding its user base by continuously growing its product range along with multiple marketing initiatives. The company is using many social media influencers (foreign influencers too) to drive women-innerwear and athleisure.

Outlook

We reiterate our BUY rating on the stock with a TP of INR57,500, premised on 65x Mar’27E EPS (10-year and 5-year average P/E at 65x-70x).

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