ICICI Direct has given Hold recommendation for Page Industries with a target price of Rs. 34800 in its research report issued on May 28, 2021
ICICI Direct’s research report on Page Industries
Page continued its upward trajectory with healthy topline growth in Q4FY21, driven by strong demand for athleisure wear. Revenue grew 63% YoY to Rs 927.1 crore (two year CAGR: 20.4%), with volumes increasing 54.2% to 46.2 million pieces (partially attributable to benign base). On account of higher RM prices, gross margins declined 122 bps YoY to 57.6%. Employee and other expenses increased 23% and 37% YoY, respectively. Subsequently, EBITDA margins came in at 19.3% (I-direct estimate: 20.5%, Q3FY21: 24.4%, Q4FY20: 10.7%). Absolute EBITDA increased 80% YoY to Rs 169.8 crore. Driven by a healthy operational performance, PAT came in at Rs 115.6 crore (Q4FY20: Rs 31.0 crore).
We maintain HOLD rating on the stock with a revised target price of Rs 34800 (62x FY23E EPS, earlier TP: Rs 31500) and await a better entry point.