HSBC has initiated coverage on Page Industries with a ‘Reduce’ rating and a target price of ₹41,450, citing saturation in its core men’s innerwear category and the absence of compelling growth levers in adjacent segments like athleisure.
The brokerage expects Page to deliver a modest 10% revenue CAGR between FY25 and FY28, which it considers below par relative to the company’s historical performance and premium valuation multiples. HSBC notes that the men’s innerwear segment, which accounts for a significant chunk of revenue, appears mature with limited room for market share expansion or pricing gains.
Furthermore, Page’s athleisure vertical lacks a distinct brand positioning compared to other specialist sportswear brands, making it difficult to scale rapidly in an increasingly competitive environment. Although the brand continues to dominate in Tier I cities, penetration in rural and semi-urban markets has not materially accelerated.
HSBC’s valuation is based on a target PE of 50x, a discount to the 10-year historical average of 59x. The bank suggests that while Page remains a cash-rich, brand-strong business, its current valuation does not leave room for growth disappointment.
