MOSL: PAGE INDUSTRIES (Neutral)-Healthy volumes but margins and working capital disappoint
PAGE INDUSTRIES: Healthy volumes but margins and working capital disappoint
(PAG IN, Mkt Cap USD3.7b, CMP INR23724, TP INR24765, 5% Upside, Neutral)
- 2QFY20 sales grew 12.3% YoY to INR7.7b (v/s est. INR7.4b). Overall volume grew 9.1% YoY (v/s est. 2%). EBITDA was up 4.4% to INR1.5b (v/s est. INR1.6b); PBT declined 7% to INR1.3b (v/s est. INR1.4b) and Adj. PAT was up 23.6% to INR1.1b (v/s est. INR941m).
- Gross margin was down 180bp YoY to 56%. EBITDA margin declined a sharp 150bp YoY to 19.2%; employee costs as % of sales (up 10bp YoY) was offset by other expenses as % of sales (down 50bp YoY).
1HFY20 revenue/ EBITDA/ PAT grew 6.9%/1.1%/3.7% YoY.
Page Industries is a garment manufacturing group based in India. Co. is the exclusive licensee of JOCKEY International for manufacture and distribution of the JOCKEY® brand Innerwear/Leisurewear for Men and Women in India, Sri Lanka, Bangladesh, Nepal and United Arab Emirates. Co. is also the exclusive licensee of Speedo International for the manufacture, marketing and distribution of the Speedo brand in India (products include swimwear, water shorts, apparel, equipment and footwear). Co. maintains manufacturing operations spread over 9 complexes in Bangalore and Hassan in addition to 25,000 plus retail outlets in 1,200 cities and towns across India.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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