Page Industries shares fall 15% and hit 52 week low on weak results; Check analyst targets

The shares of Page Industries Limited. fell as much as 15% during the first half of the trading session on Friday, and the stock hit a 52-week low price of Rs 34,968.60 apiece. The decline in share price comes on the back of weak results announced by the company for the quarter ending March 2023.

The company reported a net profit of Rs 78 crore in Q4 FY23, registering a decline of 59% compared to Rs 190 crore in the corresponding quarter last year, and revenue from operations of Rs 969.09 crore, down 12.8 percent in comparison to Rs 1111.11 crore in the fourth quarter of FY22.

At 12:20 a.m., the stock was trading at Rs 37,214.00 on the BSE, down by 9.50 percent from its previous close.

Page Industries Ltd. is engaged in the manufacturing, distribution, and marketing of innerwear, athleisure, sleepwear, and swimwear for men, women, and kids under the brand name Jockey.

As per the consolidated financials of the previous quarter, their operating revenues decreased from ₹ 1,223 crores in Q3 to ₹ 969 crores in Q4 FY23. Similarly, for a  YoY comparison, the revenues declined by 23 percent from ₹3,886 crores during FY 21-22 to ₹ 4,788 crores in FY 22-23. 

The net profit of the company has significantly decreased by 36.5 percent from  ₹123 crores in Q3 to  ₹ 78 crores in Q4, Similarly, for a  YoY comparison, the net profit declined by  6.5 percent from ₹  536 crores during FY 21-22 to  ₹ 571 crores in FY 22-23.

The company’s board has also declared a fourth interim dividend of Rs 60 per equity share for the years 2022-2023.

With a future outlook for the company, here are the targets given by analysts:

• ICICI Securities has given a target price of Rs 41,000 for an upside of 10%.  and 
• Kotak Securities has given a fair value of Rs 33,000 with a downside of 11.2%.

The rationale behind giving such a recommendation is 

• The company’s medium-term earnings prospects have improved due to investments made in distribution, design, and technology. RoCE is likely to improve by ~45%. 
• Earnings are expected to increase by 16% in FY24-25E, with a CAGR of 16% in FY23-25E. 
• Kotak Securities Analysts expect ARS(Auto Replenishment System) to drag performance in the next two quarters.

According to the latest data pertaining to the shareholding pattern, the promoters hold a 46.12 percent stake, and foreign institutional investors (FIIs) have a 22.38 percent stake in the company for FY 22–23.

Written by Omkar C

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