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Page Industries share turned Rs 1 lakh into Rs 28 lakh in 10 years

An investment of Rs 1 lakh in the stock on August 21, 2009  would have grown to Rs 28.73 lakh today. The Page Industries share price has zoomed from Rs 613 on August 21, 2009 to Rs 17,617 on the BSE.

twitter-logo BusinessToday.In        Last Updated: August 23, 2019  | 16:23 IST
This innerwear brand stock turned Rs 1 lakh into Rs 28 lakh in 10 years
Page Industries share price has zoomed from Rs 613 on August 21, 2009 to Rs 17,617 on the BSE.

Page Industries share has delivered strong returns for its investors in the last ten years. Page Industries is the exclusive licensee of JOCKEY International for manufacture, distribution and marketing of the JOCKEY brand in India. An investment of Rs 1 lakh in the stock on August 21, 2009  would have grown to Rs 28.73 lakh today. The Page Industries share price has zoomed from Rs 613 on August 21, 2009 to Rs 17,617 on the BSE. Three of 14 brokerages rate the stock 'outperform', four "hold", six "underperform" and one "sell", according to analysts' recommendations tracked by Reuters.

Over the years, the strong financial performance of the firm has helped the stock rally. Page Industries reported net profit of Rs 393.94 crore for the fiscal ended March 2019 compared to Rs 39.61 crore for  the fiscal ended March 2010.

Its revenue rose to Rs 2,883 crore for the fiscal ended March 2019 from Rs 353.12 crore in the fiscal ended March 2010.  Basic earnings per share for 2019 fiscal stood at Rs 353.19 compared to Rs 35.91 for fiscal ended 2010. Return on capital employed rose to 76.19% in last fiscal compared to 32.73% for the fiscal ended 2010.

Return on assets stood at 29.16% in last fiscal compared to 14.47% for the fiscal ended 2010.  Net profit per share rose to Rs 353.18 in last fiscal compared to Rs 35.51 for the fiscal ended 2010.

However, the stock has not done particularly well in recent quarters. Even though the large cap stock has logged 2,773% returns during the last 10 years, its share price has fallen 49.06% in the last one year and lost 30% since the beginning of this year. Page Industries market capitalisation stood at Rs 19,307 crore in morning trade today.

Page Industries reported a net profit of Rs 110.67 crore in June quarter of current fiscal compared to Rs 124.44 crore in the corresponding quarter of previous fiscal.

Net sales rose to Rs 834.96 crore in June quarter of this fiscal compared to Rs 815.26 crore in June quarter of previous fiscal. Page Industries in Q4 of 2018 reported Rs 607.86 crore in sales compared to Rs 608.40 crore in the corresponding quarter of last fiscal. Net profit in Q4 stood at Rs 74.98 crore compared to Rs 94.22 crore in the corresponding quarter in previous fiscal.

Analysts from Dolat Capital Market, in a report on August 8 referred to muted Q4 earnings of the firm, saying: "We attribute this to slowdown in the economy and low footfalls in EBO's (exclusive brand outlets)"

Kotak Institutional Equities said in a report on August 8, "The weak and disappointing earnings print aside, the big takeaway for us was the management repeatedly indicating the need for an uptick in external factors (economy, market) for growth to revive back to healthier levels for a company that has historically defied challenging market backdrops (the slow 2013-16 phase, demonetisation, GST, etc.), this seems to be a new reality."

Page Industries is engaged in the business of manufacturing and trading of garments. The company offers knitted garments. The company offers a range of products for men, women and children.

The company also holds licence of SPEEDO, an international brand for swim wear. The Jockey brand is available in over 1,400 cities and towns. The company's Jockey brand products are sold through exclusive brand outlets, large format stores, multi brand outlets, traditional hosiery stores and multi-purpose stores spread across India.

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