Target: ₹51,458
CMP:₹45,453.75
Page Industries, an exclusive licensee of Jockey USA in India and neighboring countries, has established market leadership in men premium innerwear and women lingerie segments.
With 70 per cent in-house manufacturing, Page has control over its cost structure. It has developed pan India distribution network selling through multiple channels of – MBOs, EBOs, LFS and E-commerce.
We believe that Page has all the required ingredients - strong brand pull, pan India reach, widest range of product portfolio, technological infrastructure and clean balance sheet to continue its compounding journey.
Over FY12-22 number of Jockey EBOs have increased 15 times to 1030 while MBO reach has expanded 5-fold to 105,000 outlets. Over the same time frame Jockey’s geographic reach has more than doubled to 2,850 cities. Over FY10-20 (excluded FY21 due to pandemic impact) Jockey’s sales/EBITDA/PAT has grown at CAGR of 24 per cent each. Despite scaling up the business by 9x over the last decade, the company remains debt free and cash and cash equivalent of ₹540 crore as of H1-FY22.
We remain bullish on Page and expect its sales/EBITDA/PAT to grow at CAGR of 18 per cent/22 per cent/26 per cent over FY20-24. We initiate on Page with a Buy rating and target price of ₹51,458 with target multiple of 66x.