Page Industries Ltd - Strong Quarter - Emkay

Reco: SELL
CMP: Rs 4290
Target Price: Rs 4109

- Results above estimates- Revenues at Rs 3bn, + 39% yoy; EBIDTA margins -50bps yoy to 20.9% & APAT at Rs 431mn, +32% yoy

- Blended volume growth strong at 18% yoy. Growth driven by men's wear & sportswear

- Against expectation of gross margin expansion, reports 20bps decline in gross margins led by input cost rise. Higher ad spends curtail EBIDTA margins by 50bps to 20.9%

- Believe core thesis of high working capital due to mix change, insufficient free cash to maintain high payout and thus debt addition is intact. Maintain Sell with PT of Rs4109

Source : Equity Bulls

Keywords