Page Industries shares slip 4% amid mixed brokerages Q1 reviews

Shares of Page Industries Ltd. fell 4% on Friday, post Q1 earnings. Mixed analyst opinions have influenced this performance, particularly following the company's recent earnings report. While brokerage Citi maintains a cautious outlook, citing a lack of near-term catalysts for growth, Goldman Sachs expressed optimism, noting that "Page Industries' PAT was well-ahead of estimates and was led by gross margin expansion." The stock slipped 4% to Rs 43,875 in early deals against the previous close of Rs 45,725. Market cap of the firm fell to Rs 49,269 crore.

Citi's cautious stance was underscored by their evaluation of the company's June quarter performance. Citi said the company's volume growth in the June quarter was weak at 1.9% compared to its estimates of 8.5%. This perspective contrasts with Goldman Sachs' view, which anticipates a potential upside, setting a price target of ₹50,000 per share, suggesting a 9% growth from recent levels.

Meanwhile, Citi projects nearly a 20% downside, with a target price of ₹36,800. "Its earnings before interest, taxes, depreciation and amortisation (EBITDA) and profit after tax (PAT) increased 21% and 22% from Citi's estimates of 8% and 11%, respectively."

The competitive intensity in the industry appears structurally lower, with Page Industries potentially benefiting as the macroeconomic environment recovers. Despite this potential, the company's volume growth remains a critical issue for stakeholders to monitor as the industry navigates these challenges.

Page Industries Ltd. reported a 22% rise in net profit for the first quarter on Thursday. Net profit rose to ₹201 crore, up from ₹165 crore in the same period last year. The company's revenue also showed an improvement, growing by 3% to reach ₹1,316 crore. Meanwhile, EBITDA surged by 21% to ₹295 crore, with margins expanding by 340 basis points to 22.4%.