Emkay Global Financial has given Buy recommendation for Page Industries with a target price of Rs. 37,500 in its research report issued on Aug 13, 2021

Emkay Global Financial’s report on Page Industries

Q1 performance was slightly better, with revenue recovery at 60% (10% ahead of estimates) and EBITDA margins at 6.8%. Sales grew 76% yoy to Rs5bn on low comparables, but declined 43% qoq due to the Covid-induced restrictions. Management indicated that Jul’21 sales recovery is healthy and similar to Apr’21. Strong growth plans in Kidswear/Athleisure and aggressive network expansion into Tier-3/4 and rural towns offer good visibility of mid-teens growth ahead. Margin trends are healthy with better cost control despite a steep increase in RM prices and relatively lower price hikes (~7-8% vs. 20% of its peers in the economy category). PAG hinted at returning to 21%+ margins ahead, as sales recover.


Strong on-the-ground execution during lockdowns and focus on fast-growing categories (Kids/Athleisure) and strong network expansion keep us positive on PAG. Maintain Buy with a revised TP of Rs37,500 ((55x Sep’23E EPS).

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