The shares of a Midcap garments company, which is the exclusive licensee of JOCKEY International Inc. for manufacturing, distribution, and marketing of the JOCKEY brand in various countries with a double-digit EBITDA margin for FY25, to add to your watchlist.
Price Action
The shares of Page Industries Ltd, with a total market capitalization of Rs 47,235 Crore on Wednesday, opened at Rs 42.399 per share, which was higher than the previous close of 42,006.
Manufacturing Capabilities
The company boasts over 70 percent in-house manufacturing, with facilities spanning 2.2 million sq. ft. across 16 manufacturing units in Karnataka, Tamil Nadu, and an upcoming facility in Odisha.
Strategic Initiatives
The company is ramping up manufacturing and sales capacity while expanding its channel presence through distribution, Exclusive Brand Outlets, Large Format Stores, and e-commerce. Brand-building initiatives will focus on boosting brand awareness, product visibility, and consumer engagement. Increased investments in sales and marketing at the point of sale, along with enhanced spending in R&D, product development, innovation, automation, and digital transformation, are key priorities for growth.
Margin Guidance
The current EBITDA margins, which exceed the typical 19 to 21 percent range, are viewed as a unique phenomenon by the management. The management is optimistic about maintaining EBITDA margins within the 19 to 21 percent range for the FY25.
Brands of Page Industries Ltd
Jockey, the company’s flagship brand, leads the premium innerwear and leisure wear market, with a presence in 2,710 cities, 1,10,176 multi-brand outlets, 1,436 exclusive brand stores, and 1,212 large-format stores, as well as online. Speedo is available in 1,001 stores and 37 exclusive brand outlets across 150+ cities.
Financials
The company reported a growth of 7.1 percent YoY in revenue from operations from Rs 1226 Crore in Q3FY24 to Rs 1,313 Crore in Q3FY25. Their EBITDA grew by 33.6 percent YoY from Rs 226 crore to Rs 302.5 Crore. Their PAT saw a growth of 34.3 percent YoY from Rs 152 crore to Rs 205 Crore over the same period.
Brokerage Target
Motilal Oswal has set a price target of Rs 57,500 per share, implying a potential upside of around 30 percent. It noted that the growth prospects of mass-premium brands like Jockey are very high and expects an EPS CAGR of 17 percent between FY25-27.
About Page Industries Ltd
Page Industries is the exclusive licensee of JOCKEY International Inc. for the manufacture, distribution, and marketing of the JOCKEY brand in India and several other countries. It is also the exclusive licensee of Speedo International Ltd. for the Speedo brand in India.
Written By Adhvaitha Nayani
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