📢 5 STEPS TOWARDS WEALTH 🚀 The Indian Stock Market Way
PAGE INDUSTRIES: CMP: 38982 | Long term Gr: 21% | C Year: (-3%) | FY24 Result Update
(Growth was visible for the 1st time after 8 muted quarters)
### Company Overview
**Page Industries Limited** is the exclusive licensee of JOCKEY International Inc. (USA) for manufacturing, distribution, and marketing of the JOCKEY® brand in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan, and UAE. They are also the exclusive licensee of Speedo International Ltd. for the manufacture, marketing, and distribution of the Speedo brand in India.
- **Product Range**: Innerwear, athleisure, socks, thermals, towels, handkerchiefs, caps, face masks (Jockey); swimwear, equipment, water shorts, apparel, footwear (Speedo).
- **Market Presence**: Distributed in over 2,750 cities and towns with 1,05,000+ multi-brand outlets and 1,382 exclusive brand stores.
- **Manufacturing**: 15 manufacturing units with facilities spread over 2.2 million sq ft, predominantly in Karnataka and one in Tamil Nadu, with an upcoming facility in Odisha.
- **Employee Strength**: 19,461 employees, 74% of whom are women.
### Industry Overview and Outlook
**Innerwear and Athleisure Industry in India**:
- **Trends**: Driven by advances in fabric technology and a growing trend towards health-conscious and active lifestyles.
- **Growth**: Significant growth expected in the athleisure market over the next decade.
- **Outlook**: Positive, with an emphasis on high-quality, functional apparel. Increasing demand in both urban and rural markets.
### Peer Companies and Financial Ratios
**Key Competitors**:
- **VIP Industries**
- **Rupa & Co. Ltd.**
- **Lux Industries Ltd.**
- **Hanesbrands Inc.**
- **Aditya Birla Fashion and Retail Ltd.**
We can say that Page Industry is better then its peer group in the terms of Brands and majority of the financial ratios & consistent profitability.
**Financial Ratios Page** :
- **EBITDA Margin**: 19.0% (FY24)
- **PAT Margin**: 12.4% (FY24)
- **ROCE**: 50%
### Historical Performance
- **Revenue Growth**:
Fy_04: Sales and Profit was 63 Cr and 2 Cr respectively.
IPO_Fy_07: Sales and Profit was 138 Cr and 17 Cr respectively.
Fy_14: Sales and Profit was 1194 Cr and 153 Cr respectively.
Fy_19: Sales and Profit was 2852 Cr and 394 Cr respectively.
Fy_23: Sales and Profit was 4714 Cr and 571 Cr respectively.
Fy_24: Sales and Profit is 4581 Cr and 510 Cr respectively.
We can say Company was able to grow strong from mere 63 Cr sales to 4581 Cr last year. We saw consistent profits during this whole period.
Yet revenue has a notable decline in FY24 due to market conditions. We saw the improvement during Q4_fy24.
### Financial Highlights
**Q4 FY24**:
- **Sales Volume**: Grew 6.1% YoY to 45.3 million pieces.
- **Revenue**: ₹9,954 million, a 3.2% increase YoY.
- **EBITDA**: ₹1,672 million, a growth of 24.5% over the previous year.
- **PAT**: ₹1,082 million, a significant increase of 38.1% YoY, with PAT margins at 12.4%.
**FY24**:
- **Revenue**: ₹45,817 million, a 2.8% decline due to subdued performance in the first half of the fiscal year.
- **EBITDA**: ₹8,722 million, a growth of 1.1%.
- **PAT**: ₹5,692 million, stable compared to FY23.
### Latest Results Update
- **Q4 FY24**: Moderate revenue increase yet this was better then what we saw during last few quarters, significant growth in PAT due to operational efficiency and strategic investments in digital transformation and marketing.
- **FY24**: Overall stable performance with a slight decline in revenue due to the first half's subdued market conditions.
### Profit Margin Expansion and Future Outlook
- **Operational Efficiency**: Enhanced profitability through better inventory management, cost control, and strategic investments in e-commerce and digital capabilities.
- **Future Outlook**: Focused on brand building, market expansion, and technology adoption to capture market share. Continued investments in e-commerce and distribution network expansion.
Considering the improvement in Q4 we may see this year at least better than last year with the sales growth of 10% and profit growth of 2% staying conservative.
Long term growth of 15% could be assumed which can take Page Industry towards 10000 Cr sales & Profits of 1000 Cr at fy_2030.
New buying can be done during any fall near 34066 while target next year should be 54486 where some 5% Profits can be booked. Multiyear rally along with high consistent dividends can be expected. They provide dividends 4 times a year.
Promoters hold around 46% stake, while MF & Insurance companies hold around 20% stake along with FII also with a big 25% stake.
Disclosure: Document has been prepared for the education purposes and not be used as some recommendation or Tips.
