Page Industries share price tanked 13% to Rs 35,766 today after the company’s net profit in Q4FY23 fell 58.9% on-year to Rs 78.35 crore, from Rs 190.52 crore in the corresponding quarter previous year. The company’s board recommended its fourth interim dividend of Rs 60 per equity share. Most analysts have downgraded the stock rating to ‘sell’ or ‘hold’ and have cut their target prices. Page Industries stock has fallen over 12% in the past one month, and nearly 14% in the past one year.
Should you buy, sell or hold Page Industries stock?
Nuvama: Reduce – Target Price: Rs 36800 (2.89% upside)
“We trim our FY24E PAT by 23%; FY25E PAT cut is much lower at 6% as we expect the implementation to be transient with growth likely improving H2FY24 onwards and continuing into FY25. Our revised DCF-based target price is Rs 36,800 (49x FY25E PE),” said analysts at Nuvama.
Kotak: Sell – Fair Value: Rs 33000 (7.7% downside)
“We expect ARS impact to drag performance in the next two quarters as well. Retain SELL with a revised FV of Rs 33,000 (Rs 35,000 earlier); roll-forward notwithstanding,” said analysts at Kotak Institutional Equities.
Motilal Oswal: Neutral – Target Price: Rs 37200 (4% upside)
“PAG’s medium-term earnings prospects have improved due to investments made in distribution, designs, and technology. RoCE is likely to be ~45% after falling to the late 30s in FY20/FY21. However, since the valuation at 53x FY25E EPS is expensive, we reiterate Neutral with a target price of Rs 37,200.” said analysts at Motilal Oswal.
ICICI Securities: Hold – Target Price: Rs 41000 (14.63% upside)
“We cut our earnings estimate by ~16% for FY24-25E; modelling revenue / EBITDA / PAT CAGR of 16% / 22% / 26% over FY23-25E. Downgrade to HOLD with a DCF-based revised target price of Rs 41,000 (earlier Rs 43,500). Key downside risks are the underperformance of men’s innerwear and sharper-than-expected RM inflation,” said analysts at ICICI Securities.
