Views on Page Industries 4QFY2014 results - Angel Broking

Views of Ms. Tejashwini Kumari (Equity Research Associates-Mid Caps, Angel Broking) on Page Industries 4QFY2014 results:

"Page Industries (Page) reported yet another strong quarter. The company's top-line grew by 33.4% yoy to Rs. 279cr, marginally higher than our estimate of Rs. 268cr, for 4QFY2014. This robust growth was aided by 16.4% volume growth and 15.2% value growth. The operating margin expanded substantially by 246bp yoy to 20.0% for the quarter majorly on account of lower other raw material cost a percentage of net sales. Moreover, it came in 151bp higher than our estimate of 18.5% because of lower-than-expected other expense. On account of robust top-line growth and margin expansion on a yoy basis, the company reported a 48.7% 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 tax for the quarter was higher than expected. The company continues to pay handsome dividend at Rs. 60 per share. 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. We continue to maintain Accumulate on the stock."

Shares of PAGE INDUSTRIES LTD. was last trading in BSE at Rs.6060 as compared to the previous close of Rs. 6131.55. The total number of shares traded during the day was 876 in over 284 trades.

The stock hit an intraday high of Rs. 6179.95 and intraday low of 6023. The net turnover during the day was Rs. 5343344.

Source : Equity Bulls

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