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Rs 10,000 turn into nearly Rs 1.5 lakh in 7 years: Buy this large-cap consumer stock and gain 25%

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Updated: April 13, 2018 1:17:12 PM

We bring to you a large-cap consumer stock that has turned Rs 10,000 to nearly Rs 1.5 lakh in last 7 years to buy and gain up to 25% on your investment.

Photo for representational purposes only. (Image: Reuters)

In the last financial year, Indian stock markets have enjoyed a raging run which steered the key equity indices Sensex and Nifty to cross the psychological levels of 30,000 and 10,000 for the first time ever. On looking at a wider stretch, the domestic markets have fared well enough in the last 7 years with Sensex returning about 73% to 34,101 from a level of around 19,697 as on 13 April 2011. Though, the benchmark Sensex just got appreciated by about 4% from the early November-2010 to mid-March 2014. In the meantime, many stocks ranging from sectors such as consumer durables, FMCG, banks, IT, real estate and automobile have outperformed these stellar returns.

We bring to you a large-cap consumer stock that has turned Rs 10,000 to nearly Rs 1.5 lakh in last 7 years to buy and gain up to 25% on your investment.

Shares of the Bangaluru-based Page Industries Ltd have been gaining exceptionally well since their inception on the stock markets in February 2007. The stock of Page Industries has turned an investment of Rs 10,000 into nearly Rs 1.5 lakhs in the last seven years. Shares of Page Industries have risen 1,333.11% to Rs 24,711.1 (12 April 2018) from a share price level of Rs 1,724.3 (13 April 2011). This implies that an investment of Rs 10,000 (approximately 6 equity shares of Page Industries) now stands at Rs 1,43,311 (nearly Rs 1.5 lakhs).

The research and brokerage firm Motilal Oswal Securities has given a buy rating to the shares of Page Industries with a further upside of 23% to a target price of Rs 27,490 from the recommendation price of Rs 22,288. “We expect Page to report net sales of Rs 5.9 billion, up 19.7% YoY, led by double-digit volume growth. We note that volume growth in men’s innerwear has a high base of 10.5%,” Motilal Oswal Securities said in a research report.

Shares of Page Industries are categorised in the ‘A’ group shares and are a component of S&P BSE 200 index on Bombay Stock Exchange. Page Industries commands a market capitalisation of Rs 27,575 crore on the basis of the share price of Rs 24,722.3 on BSE. Shares of Page Industries are held by about 18 mutual funds and out of which Axis Mutual Fund has about 2.4% of the total shareholding, as per the data available with the stock exchanges.

Interestingly, Page Industries is the manufacturer of one of the most sought-after innerwear brand Jockey. According to company’s website, Page Industries is the exclusive licensee of Jockey International Inc (USA) for manufacturing, distribution and marketing of the Jockey merchandise in India and UAE along with the regional nations such as Sri Lanka, Bangladesh and Nepal. Page Industries also holds the exclusive license of Speedo International Ltd in India.

Earlier in November last year, Motilal Oswal Securities said that strong brand equity of ‘Jockey’, a wide and increasing distribution reach, commendable design ability and a robust manufacturing setup are the key advantages with Page Industries. “A widening product and brand portfolio, coupled with distribution expansion, will aid its market share and drive multiple years of growth, in our view,’ Motilal Oswal Securities added.

 

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