Jockey Licensee Stock Falls To 52-week Low, “BUY” Says Emkay For Solid Returns

Broking firm Emkay Global has recommended buying the stock of Jockey franchisee Page Industries in its latest report. Page Industries is the exclusive licensee of JOCKEY International Inc. (USA) for manufacture, distribution and marketing of the JOCKEY brand in India, Sri Lanka, Bangladesh, Nepal and the UAE.

Page Industries reports weak growth

According to Emkay global, for Q3FY23, Page reported weak revenue growth of 3%, led by 11% volume decline and 15% improvement in realization. "While secondary sales (consumer-level) were relatively better, ARS implementation led to lower primary billings during Q3. Among categories, the men's innerwear and women (brassiere) categories saw double-digit growth, while athleisure saw pressure due to a high base," the brokerage has said.

According to Emkay Global, the Company recently opened its 10th EBO in Dubai and anticipates huge growth potential in the Middle East, led by strong brand recognition among NRIs and improving traction with locals.

Buy Page Industries stock, with a price target of Rs 48,800

While competitive intensity remains high, Page Industries denied any market-share loss andemphasized on retaining its strong medium-term growth outlook. Focus remains on cost savings till revival of demand. "We cut FY23/24E EPS by 3-5%, on need of higher brand investments. Focus on women/athleisure categories and distribution expansion should help PAG to deliver mid-teen earnings growth over the medium term. We maintain BUY with revised target price of Rs48,800 (on unchanged multiple of 58x FY25E EPS)," Emkay Global has said in its report.

How the stock price has moved in recent times?

The stock of Page Industries had on Oct 21, hit a 52-week high of Rs 54,349 and also hit a 52-week low of Rs 37,170 on Feb 10, 2023. This means the stock has fallen significantly from its 52-week high. According to Emkay Global, Page Industries expects to start realizing the benefit of lower-cost inventory in Q4. Page Industries also indicated that its vendors work with multiple partners and that it can in-house some of the outsourced production, to ensure better asset utilization. "Q4 is also likely to be weak, with spill-over of the ARS impact and sluggish demand environment," Emkay has said in its report.

Disclaimer

The above-mentioned stock recommendation of Page Industries is picked from the brokerage report of Emkay Global. Greynium Information Technologies, Emkay Global and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.