ICICI Securities research report on Page Industries
4Q was disappointing with 19% volume decline. We expect the weakness to continue in the medium-term and see multiple headwinds – (1) prolonged period of weak performance given a highly discretionary product, (2) difficulties in new category launches / scale up and (3) potential delay in premiumisation journey. Profitability is also likely to come under pressure given the high fixed cost structure and limited headroom for price hikes in the current environment.
Outlook
That said, there are long-term benefits from potential weakness in competitive intensity. Essentially, a likely instance of market share gains in a downturn. Retain HOLD.
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