Page Industries Ltd - Q4 FY21 Result Update - YES Securities

(Rating: ADD, TP: Rs35,558 Upside: 11.7%)

View - We build in 23%/36%/39% CAGR in revenue/EBITDA/PAT over FY21-23E expecting a strong recovery from 2Q onwards coupled with normalized margins. We reiterate our ADD rating on the stock with a PT of Rs 35,558 based on 60x FY23E earnings, in-line with its historic average. Key risks would be intense competition in the innerwear space impacting growth and/or margins & a prolonged lockdown of markets.

Result highlights - Better than expected revenue growth at 63% yoy led by 54% volume growth from a low base (but still a strong 2-yr CAGR of 20%) continuing 3Q momentum; gross margins impacted by 120bps given RM inflation not fully passed on; normalization of operating expenses led to lower than expected EBITDA margins at 19.3% (up 192% due to low base), lower WC and tax led to 273% growth in PAT.

Distribution expansion - Company had record addition of 14,250 MBOs and 180 EBOs to its network in FY21 in addition to doubling of share of eCom revenues.

Current situation - Manufacturing shut for past one month but sufficient pipeline inventories, confident of continued momentum seen in 2HFY21 post unlock.

Shares of PAGE INDUSTRIES LTD. was last trading in BSE at Rs.31252.05 as compared to the previous close of Rs. 31839.9. The total number of shares traded during the day was 2506 in over 1178 trades.

The stock hit an intraday high of Rs. 32129.9 and intraday low of 31005. The net turnover during the day was Rs. 78768141.

Source : Equity Bulls

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