Page Industries Share Price Target Cut By HSBC Amid Weak Demand, Limited GST Gains

HSBC has cut the price target of Page Industries to Rs 41,040 from Rs 41,070 and has maintained its 'Reduce' rating for the company.

The brokerage noted that the launch of JKY Groove is a step away from the traditional basics and low-inventory risk focus: "We see limited potential."

Margins are close to peak as raw material prices stabilise and employee costs are set to increase as production ramps up. "We cut PAT 3% on weak demand (limited GST benefit)," the brokerage added.

Page Industries launched a new fashionable range of products under JKY Groove branding in mid-May 2025. This is a fashion brand that offers athleisure products to a younger target audience, primarily Gen Z.

Traditionally, Page Industries' athleisure wear primarily served three use cases: comfort wear, sleepwear, and non-performance athleisure wear. This is the first fashion-focused launch for Page. "We believe the core ethos of Page as a company is very different, focused on low fashion, limited inventory-risk collections," the brokerage noted.

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Although the brand remains in the pilot stage (limited SKUs online), "we don't expect its launch to turn around structural growth concerns within the athleisure business. We are more sanguine about Page's athleisure business prospects in general. While the Jockey brand does stand for comfort, it has limited aspirational appeal, unlike other brands, such as Adidas and Nike," the brokerage said.

The brokerage further added that the recent GST cut will have a limited impact on Page's growth, as products priced below Rs 1,000, i.e., in the 5% bracket, already account for 90% of Page's sales. So only 10% of sales in the Rs 1,000-2,500 range will see a benefit from GST being lowered from 12% to 5%.

Even if the entire benefit of lower prices leads to higher volumes, "we estimate it would have only a 0.5% positive impact on volumes," the brokerage added.