Shares of Page Industries fell over 1% to ₹44,415 on Friday, June 20, after global brokerage HSBC initiated coverage with a ‘Reduce’ rating and set a target price of ₹41,450. The downgrade comes on the back of concerns around slowing growth in its core men’s innerwear business and lacklustre momentum in adjacent segments like athleisure.
In its note, HSBC stated, “We believe Page’s core segment of men’s innerwear is mature, with limited room for further market share gains or significant pricing power.” The brokerage projects a modest 10% revenue CAGR between FY25 and FY28, significantly below the company’s historical growth rates.
HSBC also flagged concerns about the brand’s athleisure segment, stating it lacks strong differentiation compared to specialist sportswear brands and is facing intensifying competition. While Page Industries maintains a dominant presence in Tier I cities, the brokerage highlighted that rural and semi-urban market penetration remains slow.
Despite recognizing Page as a “cash-rich, brand-strong business,” HSBC argued that the stock’s current valuation—trading at a PE ratio near 68x—leaves limited margin for error. Their valuation is based on a target PE of 50x, a discount to the company’s 10-year historical average of 59x.
The stock, which has a 52-week high of ₹49,849.95, has been under pressure recently amid margin concerns and cautious investor sentiment around demand recovery.
