Mehabe score: 5 G Factor: 5 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 7.
Description
Incorporated in 1995, Page Industries Limited is the exclusive licensee of JOCKEY International Inc. for manufacturing, distribution and marketing of the JOCKEY® brand in India, Sri Lanka, Bangladesh, Nepal and the UAE. Page Industries is also the exclusive licensee of Speedo International Ltd. for the manufacturing, marketing and distribution of the Speedo brand in India.
Main Points
Production Capacities
Page Industries own Manufacturing Facilities spread over 2.4 million sq ft across 15 manufacturing units which has a production capacity of 260 million pieces per annum. These facilities are supported by strong backwards integration. #Site:PAGEINDMain Symbol:PAGEIND
Stock trades at 33203.0, above its 50dma 29969.36. It also trades above its 200dma 27403.32. The stock remains bullish on techicals
The 52 week high is at 32460.00 and the 52week low is at 17685.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 43.45%
– has been maintaining a healthy dividend payout of 77.17%
-‘s median sales growth is 18.54% of last 10 years
Weakness
– Stock is trading at 41.85 times its book value
-Promoter holding has decreased over last quarter: -0.41%
-The company has delivered a poor sales growth of 9.55% over past five years.
Competition
– The industry trades at a mean P/E of 40.8x. Page Industries trades at the industry’s max P/E of 108.7x. PAGEIND trades at a P/E of 109.0x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 8.0. PAGEIND has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 15.3%. The max 1- month return was given by Gokaldas Exports: a return of 34.08 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 881.0 cr compared to Rs 541.0 cr for period ended Mar 2020, a rise of 62.8%
Operating Profits reported at Rs 170.0 cr for period ended Mar 2021 vis-vis 58.0 for period ended Mar 2020 .
Operating Margins expanded 857.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 103.61 compared to Rs 137.8 for previous quarter ended Dec 2020 and Rs 27.81 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2833.0 cr for period ended Mar 2021 vis-vis sales of Rs 2945.0 cr for the period ended Mar 2020, a fall of 4.0%. The 3 year sales cagr stood at 3.6%.
Operating margins expanded to 19.0% for period ended Mar 2021 vis-vis 18.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 341.0 cr for period ended Mar 2021 vis-vis sales of Rs 343.0 cr for the period ended Mar 2020, falling 0.6%.
Company reported a poor Net Profit CAGR of -0.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 696.0 cr for period ended Mar 2021 vis-vis Rs 517.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 67% on a 1 Year basis vis-vis a return of 5% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is -1% vis-vis a compounded profit growth of -1% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has fallen for the period ended Jun 2021. The Jun 2021 fii holding stood at 23.62% vis-vis 25.89% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 9.84% vis-vis 9.61% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 43.45%
– has been maintaining a healthy dividend payout of 77.17%
-‘s median sales growth is 18.54% of last 10 years – Stock is trading at 41.85 times its book value
-Promoter holding has decreased over last quarter: -0.41%
-The company has delivered a poor sales growth of 9.55% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 29969.36 and is trading at 33203.0, thus bullish price action wise.
