Citi has maintained a ‘Sell’ rating on Page Industries, setting a target price of ₹36,800, implying a 19.7% downside from the current market price of ₹45,790. The brokerage flagged muted volume growth and lack of visible catalysts as reasons for its cautious stance.
Page Industries reported volume growth of just 1.9% year-on-year, sharply below Citi’s estimate of 8.5%. While EBITDA and PAT rose 21% and 22% YoY, respectively, both figures came in 8–11% below Citi’s estimates. The improvement in gross margins by 498 basis points YoY to 59.1% was attributed to better sewing efficiency.
Management noted that the shift in festive seasons and a broader slowdown in retail impacted volumes. It aims to return to double-digit growth and reiterated its EBITDA margin guidance of 19–21%. However, Citi remains cautious due to muted performance across both EBO (Exclusive Brand Outlets) and MBO (Multi-Brand Outlets) and the absence of immediate growth drivers.
Disclaimer:
The views expressed in this article are based solely on Citi’s analysis. This does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
