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Cholamandalam
Page Ind (Sell)
CMP: ₹15,780
Target: ₹14,125
Page Industries is the exclusive licensee of US’ Jockey International Inc to manufacture and distribute Jockey brand in India, Sri Lanka, Nepal, Bangladesh and UAE till 2030. They broadly operate in premium men’s innerwear; women’s innerwear and leisure wear segments.
Page Industries’ revenue grew by 13.3 per cent y-o-y at ₹499.48 crore aided by strong volume and realisation growth. Total volume grew 10.8 per cent y-o-y and blended realisation improved 4.6 per cent y-o-y, led by 4 per cent price increase in 4QFY17.
We like the company for its strong brand recall and healthy fundamentals.
We feel that the stock is richly valued and
maintain a ‘Sell’ rating on the stock, with a target price of ₹14,125 (a target multiple of 38XFY19E
EPS).
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