Rs 100/Share Dividend: Rs 36,500 Apparels Stock To Turn Ex-Dividend This Week; BUY, SELL, OR HOLD?

Jockey license holder, Page Industries share price will be in focus this week as they will turn ex-dividend. The company fixed February 16 as the record date to determine eligible shareholders, while it plans to pay the new reward in the initial days of March. PAGE is a dividend king stock and holds a strong track record of rewarding its shareholders for the past five years. The company has already paid two hefty interim dividends for FY24 and is now planning to pay a third interim dividend to the tune of 1,000%.

Page Industries Share Price:

Last week, Page Industries' share price ended at Rs 36,309.70 apiece, down by 1.12% on BSE with a market cap of Rs 40,499.38 crore.

The stock['s 52-week high and low are at Rs 43,599 and Rs 34,968.60 respectively.

Page Industries Dividend:

The company has declared a third interim dividend of Rs 100 per share for FY24. The record date fixed for the payment of the interim dividend is 16 February 2024. The date fixed for payment of dividend is on or before 8 March 2024.

Earlier, the company paid a first and second interim dividend of Rs 75 each for the fiscal. In FY23, the company paid up to 2,500% dividend amounting to Rs 250 per share.

On the current market price, PAGE has a dividend yield of 0.69%.

PAGE Industries Q3 Results:

In Q3FY24, the company witnessed a 4.6% YoY growth in sales volumes, amounting to 55.2 million pieces. Revenue achieved Rs. 12,288 million, marking a year-over-year increase of 2.4%.

While EBITDA for the quarter was Rs. 2,352 million, a growth of 19.1% over the previous year, reflecting healthy margins of 18.6%. The impact of investments in digital transformation and marketing initiatives was largely balanced by favourable input costs and operational expenses optimisation.

PAT was Rs. 1,524 million, a significant increase of 23.1% compared to the same period last year, with PAT margins at 12.3%.

Looking ahead, PAGE said, "Page Industries is strategically positioned for sustained growth while adapting to the shifting dynamics of retail and evolving consumer demands. Our approach to embracing operational improvements and digital innovations equips us to navigate these market complexities with confidence. We are focused on prioritising the expansion of our e-commerce platform and deepening D2C connections. These efforts are aimed at enhancing consumer access and experience, ensuring we stay ahead in a competitive landscape."

Brokerages View On Page Industries:

Axis Securities:

We like the management's unwavering focus on expanding distribution through multiple channels (MBOs, EBOs, LFS) and smaller cities, and their consistent commitment to implementing ARS across the retail network despite short-term volume pressures. This will make PAGE more flexible and stronger than its competitors in the long run. However, short-term challenges such as a subdued demand environment and increased competitive intensity will keep volume growth under check.

We maintain our HOLD rating on the stock as we cut our FY25/26 PAT estimates by 8% each owing to the uncertain demand environment challenge hence we revise our TP downward to Rs 34,500/share.

Motilal Oswal:

We reduce our EPS estimates by 7% for FY24, owing to a miss in estimates for 3QFY24 and a weak near-term outlook. While we broadly maintain our estimates for FY25. We model gradual recovery in revenue in FY25 and build 10% and 14% revenue growth in FY25 and FY26. EBITDA margin is already at a healthy level; we believe PAGE will be able to sustain an EBITDA margin of ~21% for FY25/FY26.

Industry demand headwinds are expected to be sustained in the near term. Additionally, the channel inventory optimization will be a key monitorable. While efficient cost-control measures are a positive sign, the earnings outlook remains uncertain. We maintain our Neutral rating with a TP of INR35,500 (50x
Dec'25 EPS).

Kotak Institutional Equities:

We trim our FY2025-26 revenue estimates by ~3% resulting in a ~4% EBITDA cut. We model a 20% EBITDA margin each for FY2025 and FY2026, in line with the company's guided range of 19-21%. The EBITDA cut, however, was offset by lower-than-expected interest and D&A costs. We roll forward to March 2026E and retain the SELL rating with a revised DCF-based FV of Rs33,000 (Rs34,500 earlier).

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.