About the Company:
Page Industries Ltd. is the exclusive licensee of JOCKEY International (USA) and Speedo International Ltd. to manufacture, distribute and market in other Asian countries. The company has established the premium segment in the innerwear category in India through brand Jockey. The introduction of high quality products has created a paradigm shift in the way consumers perceive innerwear in our country.
QoQ & YoY Performance:
India’s largest apparel and accessories company has declared the results for the third quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs. 79,379.98 crores, increased by 2.37% in the December quarter of FY20. Total expenditure (excluding interest and depreciation expenses) is Rs. 65,501.60 crores, surged by 4.58%. EBITDA numbers down by 8.09%.
- YoY Performance: The Company has reported improvement in sales/revenue growth by 7.51% while expenditure (excluding interest and depreciation expenses) of the company increased by 14.30%. EBITDA numbers slipped by 18.59%.
- Profitability of the company: The Company posted PAT at Rs. 8,701.86 crores, declined by 24.01% QoQ and 14.60% fell on a yearly basis.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is trading at Rs. 22,337.90 per share, the company posted a decline in operating profit margins in December quarter (Q3FY20), due to higher expenses. However, as on December 31, 2019, the consolidated Net worth of the Company stood at Rs, 8,698 million and the company is witnessing debt-free, net of cash, which reflects a strong balance sheet. Hence, we recommend it to “BUY’’ for the target Rs. 26,737 per share for short-medium term horizon.
This is for the sole purpose to provide client(s) information of EQUITY GLOBAL RESEARCH (EG) and not to interpret as an investment advice. It is also not to consider as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken based on given information contained herein, is your responsibility alone. EQUITY GLOBAL RESEARCH and its subsidiaries/employees/associates will not be liable in any manner for the consequences of such action taken by you. The due diligence we have exercised after checking the correctness and authenticity of the information contained in this recommendation. In case of any inadvertent error in the used information to make this recommendation or action taken based on information the EQUITY GLOBAL RESEARCH or any of its subsidiary or associate or employee shall not be liable in any way responsible for any loss or damage. The recommendations provided here based on either Technical Analysis, Fundamental Analysis or both. EQUITY GLOBAL RESEARCH has issued this document on information obtained from sources it believes to be reliable but not independently verified; Also, the EQUITY GLOBAL RESEARCH makes no promises, guarantee, or accepts no responsibility as to its accuracy or completeness. The opinions contained within the report based on publicly available information at the time of publication and subject to change without any intimation. Any piece of information and disclosure provided herein is in summary form and has been prepared for informational purposes. The recommendations are only valid for the day of the issued report however, trading trends, volumes might vary substantially on daily basis, and recommendations may change accordingly. The information provided herein is entirely confidential. Any misuse, distribution, modification, copying, or forwarding by any person strictly prohibited. The information provided herein do not constitute a solicitation or offer to buy or sell any security or other financial instrument. The current performance may be unaudited. Past performance does not guarantee future returns. There can be no assurance that investment will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment.