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HomeMarket NewsPage Industries shares fall 4%; Citi says remain cautious but Goldman sees stock at ₹50,000
Goldman Sachs believes said the competitive intensity in the industry is structurally lower and Page Industries is likely to benefit as macro recovers.
Shares of Page Industries Ltd. fell as much as 4% on Friday, August 8, as analysts have mixed views on the stock post its first quarter results.
While brokerage firm Citi has a "sell" rating and has projected a potential downside of nearly 20% downside on the stock with a price target of ₹36,800 apiece, Goldman Sachs has a "buy" rating with a price target of ₹50,000 per share, a potential upside of 9% from Thursday's close.
Citi said the company's volume growth in the June quarter was weak at 1.9% compared to its estimates of 8.5%.
Its earnings before interest, taxes, depreciation and amortisation (EBITDA) and profit after tax (PAT) increased 21% and 22% from Citi's estimates of 8% and 11%, respectively. This was led by gross margin improvement of 498 bps to 59.1% in comparison to the brokerage's estimate of 58%.
Page Industries highlighted in its earnings call that:
Shift in festive season and slowdown in retail led to the weak volume growth
Aiming for a double-digit growth
Growth margin expansion was led by improvement in sewing efficiency.
EBITDA margin guidance maintained at 19%-21%.
No difference in like-for-like for exclusive brand outlet (EBO) and multi — brand outlet (MBO), both were muted.
Citi said it remains cautious on shares of Page Industries as there are no near-term catalysts or company-specific initiatives to drive the growth.
On the other hand, Goldman Sachs said Page Industries' PAT was well-ahead of estimates and was led by gross margin expansion.
Normalised volume growth likely in mid-single digits, it expected it to gradually recover, going forward.
The brokerage said the competitive intensity in the industry is structurally lower and Page Industries is likely to benefit as macro recovers.
Kotak Institutional Equities has maintained a "sell" rating on the stock and has cut its target price to 36,000 from 38,000 per share.
It said it remains concerned about the company's revenue growth recovery. It has trimmed the medium-term growth estimates to 10%-11% from the previous 13% to 14%.
Macquarie has maintained an "underperform" rating on the stock with a target price of ₹37,500 per share.
The brokerage said Page Industries' first quarter was cautious on demand, confident on margin. It said the EBITDA was in-line with estimates and gross margin beat offset sales missed.
The company continued to witness weakness in demand and potential downside to margin estimates, it added.
Of the 25 analysts that have coverage on the stock, nine have a "buy" rating, five have a "hold" rating and 11 have a "sell" rating.
Shares of Page Industries are trading 3.8% lower on Friday at ₹44,035. The stock is down 10% in the last one month.
First Published:
Aug 8, 2025 9:35 AM
IST
