Page Industries Ltd:Buy/sell/hold,growth prospects and recomendation,news and results,target price and analysis

Scripscan:Page Industries Ltd
Code:532827
cmp:790

Story:Page Industries is the only listed company in the textile sector, which has seen a secular rise in its stock prices since early 2009. Although the company is in a sector which some view as a sunset industry, its unique business model and comparatively niche product portfolio have helped it stand out in the sector.Bangalore-based Page industries is the exclusive licensee for manufacturing and distribution of the US-based innerwear brand ‘Jockey’. Apart from India the company also distributes both men and women innerwear in Sri Lanka, Bangladesh and Nepal under the Jockey brand. In the recent past, the company has also indicated its desire to expand its presence in West Asia.Its product portfolio comprises men and women innerwear along with leisurewear. The innerwear products constitute a major part of revenues, with the products being hawked in the premium to super-premium category.Page has a pan-India distribution network comprising 16,000 retail outlets in 1,100 cities and towns. It also owns nearly 50 exclusive Jockey outlets across India and plans to launch 100 more new-look stores by the end of the next financial year.In the past five financial years, the company has registered a compounded growth of 36% in its revenues while operating profit grew at a CAGR of 72% during the period. Though interest and depreciation costs rose at a CAGR of 54%, the growth in net profit was still a robust 68% during the period. Though the stock is trading at its all-time high, at the current market price its P/E at 22.4 is very close to its average since the listing of the stock. In the past three quarters the company has announced interim dividends of Rs 7, Rs 2 and Rs 6 per share, respectively.Altogether a great long term buy.