Page Industries Share Price Declines As Analysts Remain Cautious

Shares of Page Industries fell nearly 5% on Thursday, after both Macquarie and Citi took a cautious stance even as the company's margin surpassed guidance in the third quarter.

The company's Ebitda margin stood at 23% in the October-December period. This compared to an initial guidance of 19-21%.

Both brokerages expressed concern over weak demand and subdued sales growth.

While Macquarie maintained an 'underperform' rating and a target price of Rs 36,000, Citi had a 'sell' recommendation, with a hike in target price of Rs 36,400 from Rs 35,800 per share.

For the third quarter, Page Industries reported a 7% year-on-year revenue growth, falling short of Macquarie and street expectations. While realisation growth moderated and volume growth was slightly below estimation at 4.7%, the lower-than-expected employee costs and other expenses provided some relief, offsetting the sales miss.

Both analysts note that despite a healthy Ebitda margin performance, demand weakness in November and December had raised concerns about recovery and future sales growth in financial year 2026.

Additionally, the company did not expect a direct benefit from tax reductions, as these were not likely to significantly reach the target audience.

Citi’s analysis echoed similar concerns, stating that the 4.7% volume growth in the third quarter was below their expectations of 9%. Although better cost control and stable raw materials led to improved margins, Citi remained cautious about near-term catalysts, citing a subdued demand environment and increased competition. They have cut their financial year 2025-27 EPS estimates by up to 3%.

Both analysts agree that sustained demand weakness and heightened competition could hinder any meaningful recovery for Page Industries in the near future.