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Why Page Industries Share Price is Falling

Jan 2, 2023

Why Page Industries Share Price is Falling

The Indian textile sector faced a rough patch in 2022. A triple whammy of elevated raw material prices, lower exports demand due to the Russia-Ukraine war, and subdued capacity utilisation eroded the margins of textiles companies, pulling even the multibagger textile stocks' lower.

Further, the textile exports, which constitute about 22% of the industry, fell for five months in a row - declining over 15% year-on-year in November to US$ 3.1 billion.

Due to this, apparel and best textile stocks edged lower.

Among these, one stock that has seen the most beating is Page Industries. The stock has fallen over 9% in the past month.

Here is what has triggered the decline.

Profit Booking

Shares of Page Industries zoomed by a whopping 21% in the past six months, touching its 52-week high.

This rise in the stock came in after the company posted a 1,790.9% YoY jump in profits to Rs 2.1 bn on the back of higher sales.

Considering these gains, the recent correction can be due to the exorbitant valuation of the stock.

The Price to Earning (PE) multiple of the stock currently stands at 65.1x, while the average industry PE multiple stands at 36.1x. This makes the shares of the company overvalued on the PE front.

Robust quarterly results

For the September 2022 quarter, the company reported a 15.45% YoY rise in revenue at Rs 12.6 bn.

This growth came on the back of strong levers such as an increased shift in organised retail, increased branded innerwear demand, and growing aspirations for a global brand.

The net profit of the company edged marginally higher by 1.02% to Rs 1.6 bn for the September 2022 quarter. This slow profit growth was due to a 19.5% increase in expenses to Rs 10.5 bn.

For the upcoming quarters, the company has invested Rs 2.9 bn to set up two facilities for capacity expansion. These plants will provide jobs to 7,000 people.

Page Industries has also witnessed an expansion in operating profit margin by 1.5% in the last three years.

This was mainly because the company undertook calibrated price increases. Moreover, it took strong measures to control budget and expenses.

How Page Industries shares have performed recently

Page Industries shares have declined by more than 9.7% in the last month. Over the year, the stock is down more than 33%.

So far, in 2022, the shares of the company are trading higher by 4.9

The company touched its 52-week high of Rs 54,349 on 21 October 2022 and its 52-week low of Rs 37,825 on 22 June 2022.

About Page Industries

Page Industries Limited is an India-based company that is engaged in the business of manufacturing and trading garments. The company offers knitted garments.

It further offers a range of products for men, women, and children. The company is engaged in the manufacturing, distribution, and marketing of Jockey products.

Page Industries holds the license of SPEEDO, an international brand for swimwear. The company's Jockey brand products are sold through exclusive brand outlets (EBO), large format stores (LFS), multi-brand outlets (MBO), traditional hosiery stores, and multi-purpose stores, spread across India. It also sells its products online.

It has approximately 930 EBOs, which includes, 46 Jockey Woman EBOs catering to its women customers. It has six operational EBOs outside India, four in UAE, and two in Sri Lanka.

The Speedo brand is available in 1,300 stores, 34 EBOs, and 15 large format stores spread across 230 and more cities.

For more details about the company, you can have a look at the Page Industries company fact sheet and quarterly results on our website.

You can also compare Page Industries with its peers:

Page Industries vs Rupa & Co

Page Industries vs Lux Industries

Page Industries vs Bombay Dyeing

Page Industries vs Arvind

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

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Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

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