Page Industries Q4 Review: Strong Volume Growth With Robust Margin Expansion — Motilal Oswal Maintains 'Buy'

Motilal Oswal reiterates Buy rating on the stock with a target price of Rs 57,500, premised on 65x P/E FY27E EPS.

Page Industries' gross margin expanded 490 bp YoY to 60.9% (beat), supported by stable input costs. (Photo source: Jockey website)

Inventory optimization through the ARS system, new product launches, capacity expansion, and digitalization initiatives will support growth Page Industries, says Motilal Oswal. Benign input costs and cost efficiencies are likely to lead to a better margin print. The brokerage believes the valuation will remain rich but have comfort in both growth and margin in the near term.

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Motilal Oswal Report

Page Industries Ltd. reported 11% YoY sales growth in Q4 FY25 (estimate: 8%; 7% in Q3 FY25) and ~9% volume growth (estimate: 6%; 5% in Q3 FY25) to 49m units.

Volume growth was driven by consistent efforts in product innovation, marketing and distribution. In our recent channel checks in the innerwear segment, we found positive trends for Page and men’s innerwear category in the last 60 days.

Partial benefits were attributed to early Eid in Q4 (last year Eid was in Q1 FY25). Growth was broad-based, with innerwear products slightly outperforming outerwear products.

Product realization stood at Rs 223/piece, up 2% YoY, backed by premiumization and an increasing share of e-commerce. Secondary sales were slightly higher than primary sales during the quarter.

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Motilal Oswal Page Industries Q4FY25 Results Review.pdf
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Also Read: Blue Jet Healtchare Can Rally 25% Says Motilal Oswal, Maintaining 'Buy' Post Inline Q4 Results

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