Page Industries Q3 Results Review - Demand, Inventory Headwinds Delaying Recovery: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Page Industries Ltd.'s delivered a mixed performance with growth getting back to positive territory but margins getting impacted due to lower realizations, inferior mix and higher digital transformation and marketing spends.Despite a muted demand environment, the company reported 2.4% YoY growth in revenue and 4.6% growth in volumes.Margin saw a 263 basis points YoY improvement to 18.7% from a low base led by strong cost controls, low employee cost and lower fabric costs while profit after tax grew 23.1% YoY on the back better margin and higher other income..Despite near-term demand softness which is making the company run a tight ship on costs, it still intends to increase essential spends on marketing, distribution esp D2C and exclusive brand outlets and product innovation, given still low penetration rates across segments and markets. Soft raw material prices should also drive some volume and margin recovery as there is no imminent need of a price hike. Inventory health and return on investments of channel partners should improve significantly in FY25 helping control distributor attrition. We continue to believe in the long-term growth potential of the business and do not think the structural moats have been impacted. Given the near-term growth and competition headwinds, we trim our FY25 revenue/PAT estimates by 3%/8% and now build in revenue/PAT compound annual growth rate of 10%/15% over FY23E-26E. We maintain our 'Hold' rating with a target price of Rs 39,240 (Rs 38,700 earlier) based on 50 times FY26E earnings, a 20% discount to Page Industries’ long-term valuation multiple, given the currently sluggish demand environment and still high inventory levels..Click on the attachment to read the full report:.Affle India Q3 Review - Robust Results; Outlook Remains Healthy: Axis Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Page Industries Q3 Results Review - Demand, Inventory Headwinds Delaying Recovery: Systematix

Sales grew 2.4% YoY and 4.6% volume growth.

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Page Industries Q3 Results Review - Demand, Inventory Headwinds Delaying Recovery: Systematix

Sales grew 2.4% YoY and 4.6% volume growth.

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