Page Industries gains 8% on strong operational performance in March quarter

Shares of Page Industries surged 8 per cent to Rs 45,176 on the BSE in Friday’s commerce after the corporate reported strong performance in March quarter (Q4FY22). Earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) margin improved by 470 foundation factors (bps) 12 months on 12 months (YoY) and 290 bps quarter on quarter (QoQ) at 24 per cent, on higher working efficiencies.

The inventory of clothes and apparels hit a 52-week excessive of Rs 46,705 on April 26, 2022. At 10:26 am; it traded 8 per cent larger at Rs 44,935, as in comparison with 0.55 per cent rise in the S&P BSE Sensex.

Meanwhile, the corporate’s reported revenue after tax (PAT) jumped 64.9 per cent YoY to Rs 190.5 crore, on again of 37.2 per cent YoY enhance in income at Rs 3,887 crore.

That aside, the corporate stays optimistic that each one product classes and channels will proceed to witness rising development and investments in management, product innovation, warehousing, know-how and logistics assist.

“The sales momentum has picked up significantly across all our product categories backed by expansion in our portfolio and existing network. We are well poised on a growth trajectory and remain optimistic on delivering sustainable growth over the long-term,” the administration stated.

Page Industries is the unique licensee of JOCKEY International Inc. (USA) to fabricate, distribute and market the JOCKEY® model in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan and UAE. Page Industries can be the unique licensee of Speedo International to fabricate, market and distribute Speedo model in India.

However, analysts at Motilal Oswal Financials keep ‘neutral’ score on the inventory. They imagine that the near-term challenges persist as a consequence of steep rise in yarn prices and excessive base for larger realization of Athleisure phase.

“After a few years of an earnings decline (-4.3 per cent PBT CAGR over FY18-21), its performance in FY22 has been encouraging, resulting in an improved outlook. RoCE also revived to over 50 per cent after 15 years, having dipped to the late 30s in recent years. Page Industries’ higher multiples will sustain, driven by healthy revenue and earnings visibility. However, valuations at 56x FY24E EPS are rich, which leads us to maintain our Neutral rating,” the brokerage agency added.

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