Accumulate Page Industries; target of Rs 17,860: Dolat Capital
Dolat Capital’s research report on Page Industries
Despite demonetisation, Page Industries witnessed revenue growth of 18.7% YoY to Rs 21,321mn in FY17. Implementation of GST will enable a shift from highly unorganized innerwear market leading to promising growth outlook for the organised market. Moreover, GST at 5% (for apparel below Rs 1,000) is expected to have a positive impact on Page Industries’ volume growth and market position since a majority of its products are priced below Rs 1,000 per piece. Page Industries with its strong brand recall of Jockey is expected to lead the market shift towards organised and premium innerwear segment.
The company’s strong in-house product development and manufacturing expertise combined with a very strong distribution network will support healthy sales growth and profitability in the coming years. Recommend Accumulate with a TP of Rs 17,860.
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