Views on Page Industries 3QFY2014 results - Angel Broking

Views on Page Industries 3QFY2014 results - Angel Broking

"Page Industries (Page) continues to report strong set of numbers. The company's top-line grew by 39.9% yoy to Rs. 303cr, 9.8% higher than our estimate of Rs. 276cr, for the quarter. The operating margin expanded by 121bp yoy to 18.2% for the quarter majorly on account of lower other expenses as a percentage of net sales. However, it came 92bp lower than our estimate of 19.1% because of higher-than-expected raw material cost. On account of robust top-line growth and margin expansion on a yoy basis, the company reported a 36.3% growth in the profit to Rs. 35cr, in-line with our expectation. The profit came in-line with our estimate of Rs. 34cr despite of margin expansion as other income was lower than expected. Given the huge market size, Page's predominant position, strong brand recall and capacity expansion plans for the next four years to cater to the increasing demand; we remain positive on the company's growth outlook. However, due to high valuation and recent run up in the stock price, we recommend Neutral on the stock."

Source : Equity Bulls

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