'Buy' Page Industries Shares Maintains Motilal Oswal Despite Rich Valuations — Here's Why

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Motilal Oswal Report

Page Industries Ltd. has had a stupendous track record of revenue and earnings growth over the past decade. In FY25, Page posted a CAGR of 12%/13%/14% in sales/Ebitda/PAT, despite facing challenges during the year. Earnings growth was led by best-of-breed sales growth, with lower utilization of the margin lever. Moreover, it has delivered RoE of over 40% in the last 10 years.

The women’s innerwear and athleisure segment still has several white spaces in the product portfolio, and we expect Page to fix the portfolio gaps. Digital and marketing efforts will be helpful to gain share for these segments.

In our view, inventory optimization through the ARS system, new product launches, capacity expansion, and digitalization initiatives will support growth. Page’s brand equity keeps evolving into a lifestyle brand from only an innerwear brand. It will fit the brand across product lines. Benign input costs and cost efficiencies are likely to lead to a better margin print.

We believe the valuation will remain rich, though we are confident of growth acceleration in H2 FY26.

We reiterate our Buy rating on the stock with a target price of Rs 50,000, premised on 55x Sep’FY27E earnings per share.

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