Morgan Stanley has reiterated its ‘Overweight’ stance on Page Industries, with a target price of Rs 45,400, despite the company reporting subdued demand in Q3. The brokerage noted that while the festive season in October provided a temporary boost, demand softened in November and December.
However, premium product categories across segments continued to perform better, with growth outpacing in Tier 3 and Tier 4 towns compared to urban markets. The company’s price mix moderated to 2% in Q3 from 4% in Q2, driven by a shift in the category mix. Despite these challenges, Page Industries maintained its margin guidance in the 19-21% range for FY25, although IT costs are expected to rise in the upcoming quarter. The brokerage highlighted that demand remains muted heading into Q4, but management remains confident about long-term prospects.
