'Reduce' Page Industries Shares Maintains Dolat Capital Post Weak Q1 Results — Check Target Price

Page Industries continues to focus on expanding its distribution reach, with a total count of multi brand outlet/exclusive brand outlet stood at ~1,10,487+/1,490. Further, it has presence across ~1,296 LFS stores. Going ahead, focus on intensifying general trade distribution, expanding modern trade and exclusive brand outlets will help accelerate growth.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Page Industries Ltd.’s Q1 FY26 results were below our estimates. Revenue/volume grew by 3.1/2.1% YoY due to subdued consumption, impacting tertiary sales, partly due to the festive demand shift to April and geopolitical tensions in early May.

Nonetheless, E-com platform continued its growth trajectory. Further, management is optimistic about a significant pickup in growth rate once the industry revamps, given its dominant position in the market.

Gross margin expanded by 490bps YoY in Q1 FY26, led by lower raw material costs. Moreover, Ebitda margins expanded by 490 bps to 21.4% on account of operational efficiencies, cost control and strategic sourcing initiatives. Ebitda margins are expected to remain in 19-21% range.

As Q1 revenue and Ebitda were below our estimate, we have downward revised our FY26/27E EPS estimates by 3.3/3.5% at Rs 700/816.

Going ahead, we believe that revenue growth would improve with the recent price hikes and completion of ARS implementation. Valuing the stock at 58x FY27E EPS, we arrive at a target price of Rs 47,322 (Rs 49,018 earlier). Maintain Reduce.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.