Neutral Page Industries; target of Rs 35,400: Motilal Oswal

Motilal Oswal recommended Neutral rating on Page Industries with a target price of Rs 35,400 in its research report dated February 10, 2023.

Broker Research

February 14, 2023 / 22:26 IST

26 Aug, 2025 12:21

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Motilal Oswal's research report on Page Industries

PAG declared a weak set of numbers in its 3QFY23 results. Volume declined 11% YoY, while sales were flat after eight consecutive quarters of doubledigit growth. EBITDA margin of 15.8% was the lowest in a non-Covid-hit quarter for over a decade, affected by the lack of fixed cost absorption because of volume decline and the consumption of high-cost inventory during the quarter. The management indicated that double-digit sales growth was witnessed in men’s innerwear in 3QFY23, which implied that the rest of the portfolio might have seen a mid-single digit sales decline. We believe the high base of athleisure and mask sales will adversely affect 4QFY23 as well. While material consumption costs are likely to ease going forward, recovery to double-digit sales growth appears uncertain in the near term, especially as competitive intensity has increased after being low during the Covid period. Maintain Neutral on the stock.

Outlook

However, the valuation at 48.3x FY25E EPS is expensive, leading us to reiterate our Neutral rating on the stock with a TP of INR35,400.

For all recommendations report, click here