Page Industries Latest Result Analysis & Implications

Page Industries, also known as Jockey, is a publicly listed company that is the licensee of Jockey International and Speedo in India and Sri Lanka. It was founded in 1995 by the Genomal family.

Page Industries - Q4 FY20 (Audited –Cons)
CMP: 19,146

Total revenue from operations 541.2 Cr
608 Cr (-11.01%) YoY | 794 Cr (-31.85%) QoQ

Year ending revenue: 2,945 Cr Vs. 2,852 Cr (-3.24%)

Net Profit of 31.02 Cr
74.98 Cr (-58.62%) YoY 87.01 Cr (-64.39%) QoQ

Year ending Net profit: 343 Cr Vs. 394 Cr (-12.91%)

EPS (in Rs.) 27.82
67.23 YoY | 78.02 QoQ

Year ending EPS: 307.22 Vs. 353.19

View: Result is declined and below expectations. YoY revenue declined and
profit also declined in this quarter.

Business Updates & Highlights:

Q4FY20 EBITDA is around INR 58.1 Cr Vs. 127.6 Cr in Q4FY19 Vs. 138.8 Cr in
Q3FY20 therefore declined by 54.4% in YoY and declined by 58.2% in QoQ.
EBITDA margin is around 10.7% Vs. 20.8% Vs. 17.3%.

FY20 EBITDA is around INR 581 Cr Vs. 616 Cr in FY19 therefore declined by
5.7% in YoY. EBITDA margin is around 19.7% Vs. 21.6% in FY19.

Q4FY20 Gross margin remains strong and steady at 38.3%. FY20 Gross margin
remains strong and steady at 39.3%.

Financial

ROE and ROCE is around INR 48% and 69% respectively and book value per
share is around INR 760 and share is currently trading at 25.1x of its book
value. Company is currently trading at annualized PE of 63 which is high as
per Industry benchmark. Promoter holding is around 48.3% in the company
which is good and stable. FIIs and mutual fund hold around 29.1% and 8.4%
in the company which is decreased by FIIs and increased by mutual fund.
Cash and cash equivalent from operating activities as of March 2020 is
around INR 516 Cr Vs. 230 Cr as of March 2019 (Very strong).

Position: Share support price is INR 18,150. Short term share can correct
and outlook is bearish. Long term investor should continue with the
company.

Share View: Share price high 26,891 (52 week) and now 19,150. Page
Industries is the exclusive licensee of JOCKEY International Inc. (USA) for
manufacture, distribution and marketing of the JOCKEY® brand in India, Sri
Lanka, Bangladesh, Nepal, Oman, Qatar and the UAE. Page Industries is also
the exclusive licensee of Speedo International Ltd. for the manufacture,
marketing and distribution of the Speedo brand in India.
Opportunities: Positive cash flows from operations. Jockey is the company's
flagship brand and a market leader in the premium innerwear and leisure
wear category. The brand is distributed in 2850+ cities & towns and
available in 66,000+ Multi Brand Outlets, 750+ Exclusive Brand Outlets
(EBO) with extensive presence in Large Format Stores, as also online. The
company also has 6 EBO's outside India. Speedo brand is available in 1300+
stores including 40+ EBO's and 40+ Large Format Stores, spread across 150+
cities. Company brand Jockey is very popular among the Youngster and Tier
II & Tier III cities as well.

Risk: Negative bottom line and topline growth not only for Q4 but also for
FY20. Although Jockey is very strong and popular but highly competition
with premium segment brands. Further future growth is very challengeable.
Q1FY21 can also be down due to shut down for entire month in April and May
also.

Get best trading tips here and make money on a daily basis.