Emkay Global Financial has given Buy recommendation for Page Industries with a target price of Rs. 36,500 in its research report issued on May 28, 2021

Emkay Global Financial’s report on Page Industries

We upgrade PAG to Buy from Hold as the strong Q4 beat and management’s aggressive growth initiatives provide confidence of robust growth momentum ahead. Step-up in growth plans for athleisure/women/kids portfolios, faster network ramp-up (incl. MBO/EBO addition) and focus on rural penetration offer an improved mid-teens growth outlook. Q4 performance exceeded expectations. Sales grew 63% to Rs8.8bn (8% beat), led by 53% volume growth. Growth in EBITDA/PAT was in line with estimates and was impacted by higher overhead spends, up 37%, which should normalize ahead. Excluding the lockdown impact in Q1FY22, management commentary pointed to a strong growth outlook. Secondary growth was higher vs. primary in Q4. Margins are expected to remain stable as the 4-5% price hike effected in Apr’21 is likely to offset the input inflation.


Factoring in the strong revenue run rate in Q3/Q4, we raise our FY23 estimates by 15%. FY22E EPS is unchanged due to the lockdown impact. We raise the TP to Rs36,500, valuing PAG at 55x Jun’23E EPS (vs. 50x earlier) supported by DCF working.