Page Industries shares crash 15% to hit one-year low on poor Q4 show; here's what brokerages & technical analysts say

Shares of Page Industries Ltd fell sharply in Friday's trade after the company posted a 59 per cent drop in quarterly profit. The stock dived 15 per cent to hit a one-year low of Rs 34,968.60 over its previous close of Rs 41,139.50. The Jockey India licensee, known for manufacturing and distributing sports and athleisure wear, posted a profit of Rs 78.35 crore for the fourth quarter that ended March 31, 2023 (Q4 FY23), compared to Rs 191 crore a year ago. The Bengaluru-based company reported a 12.80 per cent fall in its revenue from operations.

Kotak Institutional Equities has given a 'Sell' call on the counter. "Subdued demand and mismatch in primary and secondary sales due to ARS (Auto Replenishment System) implementation drove the volume decline. We expect the ARS impact to drag performance in the next two quarters as well. We cut our FY2024-25E earning per share (EPS) estimates by 20-24 per cent owing to a weak demand environment. Retain 'Sell' with a revised fair value of Rs 33,000 (Rs 35,000 earlier); roll-forward notwithstanding," the brokerage stated.

Kotak, however, mentioned that the company is backed by a strong team and would eventually bounce back.

On the other hand, Motilal Oswal has maintained its 'Neutral' call along with a target price of Rs 37,200. "While material consumption costs are likely to ease going forward as indicated by the management, a recovery in sales to double-digit growth appears uncertain in the near term due to the implementation process of ARS and increased competitive intensity in the post-Covid period. Maintain Neutral on the stock," the brokerage said.

On the technical front, Page Industries may face resistance between Rs 37,860 and Rs 39,700 levels, analysts said.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Currently, the stock is trading below all key exponential moving averages, which is a matter of concern. Additionally, the monthly central pivot range (CPR) falls between Rs 38,600-39,700 and the current market price (CMP) is trading way below it. So, going forward mentioned CPR range would be massive resistance. Avoid fresh longs for now."

AR Ramachandran from Tips2trades said, "Poor Q4 FY23 results have led to a sharp fall in Page Industries. The stock has strong resistance at Rs 37,860."

Meanwhile, Indian equity benchmarks traded higher in late morning deals, led by strong buying interest in technology, metal, consumer, automobiles, state-owned lenders and energy stocks.