Page Industries shares hit all-time high on Q1 earnings; time to buy, sell or hold?

Shares of Page Industries hit a fresh all-time high today after the firm reported a multifold rise in Q1 profit. Page Industries stock rose 2.09 per cent to a record high of Rs 50,146.4 against the previous close of Rs 49,122.05 on BSE. The large-cap stock is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.  

The stock opened higher at Rs 49,799.5 today.

The share has gained 53.5 per cent in a year and climbed 23.22 per cent since the beginning of this year.

Total of 467 shares of the firm changed hands amounting to a turnover of Rs 2.31 crore on BSE.  Market cap of the firm rose to Rs 55,435 crore on BSE.

The share hit a 52-week low of Rs 29,965 on June 30, 2021.

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The apparel maker reported a multi-fold rise in its net profit to Rs 207.03 crore for the quarter ended June 2022 against a net profit of Rs 10.94 crore during the April-June period a year ago.

Revenue from operations in Q1 rose to Rs 1,341.26 crore, up over two-fold against a lower base of the pandemic-impacted Q1 FY22. Revenue from operations in the April-June quarter of FY22 stood at Rs 501.53 crore.

Total expenses doubled to Rs 1,070 crore in Q1 against Rs 490.57 crore in the corresponding quarter of the previous fiscal.

The board has declared its first interim dividend of Rs 60 per share.

Motilal Oswal has assigned a neutral rating to the stock with a target price of Rs 46,420, six per cent lower to the current market price of Rs 49,122.

"Three-year revenue CAGR (compared to pre-COVID levels) remains healthy at 17 per cent. We expect the healthy momentum to continue. The management expects operating margin to be in line with its long-term average of 20-22 per cent. While the outlook remains robust, we maintain our neutral rating on account of its rich valuation," the financial services firm said.

ICICI Securities has assigned a target price of Rs 52,000 to the stock.

"From a medium-to-long term perspective, we believe Page does have (operating) margin expansion potential with Page's EBITDA margins having remained in the narrow range of 18-21 per cent for the last 10 plus years. We believe Page has front-ended investments in new avenues. Maintain ADD with a target price of Rs 52,000," said the brokerage.

Page Industries Ltd is an India-based company that is engaged in the business of manufacturing and trading garments. The company offers knitted garments. The company offers a range of products for men, women and children. It is engaged in the manufacturing, distribution, and marketing of Jockey products. It holds the license of SPEEDO, an international brand for swimwear.