Geojit recommended is bullish on Page Industries has recommended buy rating on the stock with a target price of Rs 24,605 in its research report dated August 24, 2020.
Geojit's research report on Page Industries
Robust revenue growth momentum with 17% CAGR in top-line for the last 5 years. Innerwear market in India expected to grow at 12% CAGR in the next decade to Rs743bn from Rs290bn at present. While Page's increasing penetration will provide strong potential to grow. Innerwear is evolving from being functional to a segment with a fashion quotient, also shifting from price sensitive category to a brand sensitive one. Strong margin, debt free status and doubling of capacity by 2025 will help to tap vigorous opportunity in the sector. Higher asset turnover ratio, healthy dividend payout and better working capital management led to consistent improvement in ROE/ROCE. We expect most of the negatives owing to pandemic are factored in, while discretionary spending is expected to pick-up from H2FY21.
Outlook
We initiate coverage on PAGEIND with Buy rating and value at P/E of 60x on FY22E with a target price of Rs24,605.
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