Motilal Oswal is bullish on the shares of Page Industries, after the licensee of Jockey International and Speedo in India reported a 22.4% increase in net profit for the quarter ended September-17. The PAT for the quarter under review stood at at Rs. 84 crore, mainly aided by a 9% decline in its finance cost and 65.8% increase in its other income. Notably, Cartica Management LLC which manages $3.2 billion in assets globally hold more than 7.73% stake in the company as at the end of September-17. Page Industries standalone revenue for the quarter came in at Rs. 625.7 crore, registering 17% yoy increase.
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Motilal Oswal has increased its target on the shares to Rs 25,580. The shares were trading at Rs 22,678 this morning on NSE. Motilal Oswal’s target price implies an upside of more than 12.5% from the current market prices. The shares have returned more than 66% since January. In the last one month alone, the shares are up by more than 20%. The BSE Midcap index has returned 38% in the same period. The research firm says that Page Industries offers a compelling, capital efficient and long-term lifestyle play. Motilal Oswal observed that Page Industries has shown the ability to maintain strong double digit volume growth.
Apart from Page Industries, Cartica’s portfolio has sizeable allocation to Shree Cements, Marico, TVS Motors PI Industries and RBL from India. The firm which focuses on active ownership of emerging market companies is betting big on Indian smallcap and midcap scrips. Last month, in an interview to ET Now, Teresa Barger, the co-founder and CEO of Cartica Management said, “We really like the theme of financialisation in India. I think that’s here to stay.”