Surprisingly, a consumer stock has returned more than 7000% in 11 years of its IPO (Initial Public Offering) and this large-cap stock may gain up to 15% more.
Indian stock markets have grown quite better relatively compared to the developed equity markets such as the United States, China, Japan in the present year 2018 with the benchmark Sensex trading near all-time highs after returning more than 7% year to date. If the broader picture is taken into consideration, BSE Sensex has surged about 175% in the last 11 years while, on the other hand, America’s Dow Jones Industrial Average has returned nearly 106% and Japan’s benchmark Nikkei is up about 33%. In the corresponding time, a bunch of large-cap stocks have vastly outperformed the BSE Sensex such as RIL (up 233%), HDFC Bank (1100%), Maruti Suzuki (1100%), ITC (470%) and TCS (540%)**.
Surprisingly, a consumer stock has returned more than 7000% in 11 years of its IPO (Initial Public Offering) and according to a domestic research and brokerage firm, this large-cap stock may gain up to 15% more.
Shares of Page Industries have returned as much as 7092% to Rs 28,409.60 from an issue price of Rs 395 during its IPO. Page Industries successfully raised Rs 101 (approx) from its IPO by offloading as many as 28 lakh equity shares. Page Industries IPO got subscribed by 1.44 times in the three-day bidding process from 23 February to 27 February 2007. Earlier this week on 9 July, Page Industries share price made an all-time high of Rs 29,675.80 on NSE and of Rs 29,600 on BSE.
Motilal Oswal Securities has rated Page Industries as a ‘buy’ with a target price of Rs 32,200 implying an upside of over 13% from the current market price. We expect Page Industries to report net sales of Rs 8.4 billion, up 20.5% YoY, led by double-digit volume growth and a rise of 39.3% YoY in PAT to Rs 1.2 billion, Motilal Oswal Securities said in a report.
Notably, Page Industries is the exclusive manufacturer innerwear brand Jockey in India. Earlier last month, Page Industries share surged more than 6% intraday after the Bengaluru-based company informed that its license agreement with Jockey International Inc has been extended till 31 December 2040.
** Approximate round figures are considered while writing stock returns which are calculated on the closing price as on 16 March 2007.
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