Page Industries Ltd. experienced a significant rise in share value on Friday, November 8, with shares climbing as much as 6% following the release of its Q2 FY25 financial results. This marks the stock’s highest gain in a year, driven by an impressive quarterly performance and positive analyst sentiment.
Key Financial Highlights (Q2 FY25)
- Revenue: The company reported revenue of ₹1,246 crore, reflecting an 11% year-over-year increase.
- Net Profit: Net profit surged by 30.5% to ₹195.5 crore, up from the same quarter last year.
- EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew 25.6% to ₹296 crore, with an EBITDA margin expansion of over 250 basis points, reaching 23.5%.
- Volume Growth: The company reported a volume growth of 6.7% year-over-year, above market expectations of 5.7%.
In addition to the strong financial results, the Board of Directors announced a second interim dividend of ₹250 per equity share for FY24-25, with a record date set for November 16, 2024. The dividend payment is scheduled to be completed by December 6, 2024.
Analyst Reactions
Several brokerages weighed in on the Q2 results, highlighting a mix of optimism and caution:
- Motilal Oswal: Upgraded Page Industries to ‘Buy’ with a price target of ₹54,000, citing bottomed-out volume growth and improved margins. The brokerage expects a strong earnings cycle ahead, driven by benign input costs and an expected uptick in demand.
- Emkay: Retained a ‘Reduce’ rating with a target price of ₹39,000, attributing the double-digit revenue growth to a low base effect and favorable festive timing. Emkay expressed caution over the sustainability of growth trends and expects the EBITDA margin to stabilize between 19-21%.
- Nuvama: Maintained a ‘Reduce’ stance but revised the target price upward to ₹42,803 from ₹33,326, driven by improved growth across e-commerce channels. Nuvama acknowledged the company’s positive momentum and growth potential but remains conservative on its rating.
- Citi: Reaffirmed a ‘Sell’ rating with a revised target price of ₹35,800, reflecting caution on near-term catalysts. The brokerage noted strong cost control measures and increased earnings estimates for FY25-27 by 4-7%.
Outlook and Market Sentiment
Page Industries has gained over 10% in the last five trading sessions, with its Relative Strength Index (RSI) reaching 61, indicating solid momentum without being in overbought territory. The highest projected price target stands at ₹54,000, implying a further 20% upside. Analysts expect Page’s robust operational efficiencies and cost control strategies to continue benefiting the company in the near term.
Stock Performance
As of 11:51 AM on Friday, shares of Page Industries were trading at ₹47,801.00, up by 6.07% from the previous close. The stock has risen 23% year-to-date, reflecting growing investor confidence in its future performance.
Summary
Page Industries’ strong Q2 performance and interim dividend announcement have strengthened investor sentiment, with many analysts optimistic about the company’s growth trajectory. With renewed buy recommendations and an increasing price target, Page Industries continues to be a focal point in the consumer goods sector.
