PAGEIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:16 pm

Fundamental Rating: 4.0

📊 Core Financials: PAGEIND demonstrates strong fundamentals with ROE at 48.5% and ROCE at 59.4%, reflecting excellent capital efficiency. Debt-to-equity is low at 0.19, ensuring financial stability. Quarterly PAT declined slightly (-0.26%) to 195 Cr., but overall profitability remains robust. EPS of 685 ₹ highlights strong earnings power.

💹 Valuation Indicators: Current P/E of 52.0 is significantly higher than industry P/E of 27.4, suggesting premium valuation. P/B ratio ~28.3 (Price 35,700 / Book Value 1,263) is steep. PEG ratio at 4.84 indicates expensive growth-adjusted valuation. Intrinsic value appears lower than current price, making entry less attractive unless correction occurs.

🏢 Business Model & Competitive Advantage: PAGE Industries, exclusive licensee of Jockey in India, enjoys strong brand equity, distribution reach, and pricing power. Competitive advantage lies in premium positioning, consistent demand in innerwear and leisurewear, and high return ratios. Strong dividend yield (2.49%) adds investor appeal.

📈 Entry Zone Recommendation: Current price (35,700 ₹) is below DMA 50 (39,168 ₹) and DMA 200 (42,457 ₹), showing technical weakness. RSI at 23.5 and MACD negative (-968) indicate oversold conditions. Entry zone: 34,500–36,000 ₹ for accumulation. Long-term holding is favorable given strong fundamentals, but valuation risks remain.

Positive

• ✅ Strong ROE (48.5%) and ROCE (59.4%)
• ✅ Low debt-to-equity ratio (0.19)
• ✅ EPS of 685 ₹ supports earnings strength
• ✅ Attractive dividend yield (2.49%)

Limitation

• ⚠️ High P/E ratio (52.0 vs industry 27.4)
• ⚠️ Expensive PEG ratio (4.84)
• ⚠️ Stock trading below DMA 50 & DMA 200
• ⚠️ Slight quarterly PAT decline (-0.26%)

Company Negative News

• 📉 FII holdings decreased (-0.83%)
• 📉 Technical weakness with RSI oversold and MACD negative
• 📉 Stock correction from 50,590 ₹ high

Company Positive News

• 📢 DII holdings increased (+0.77%)
• 📢 Strong dividend yield supports investors
• 📢 Brand strength and distribution moat remain intact

Industry

• 🌐 Industry P/E at 27.4, showing balanced sector valuations
• 🌐 Innerwear and leisurewear demand remains resilient
• 🌐 Premium consumer brands benefit from rising disposable incomes

Conclusion

🔎 PAGE Industries demonstrates excellent fundamentals with high return ratios, strong brand equity, and dividend support. However, valuations remain stretched relative to industry peers. Entry around 34,500–36,000 ₹ offers margin of safety, making it suitable for long-term holding if accumulated during corrections.

Would you like me to extend this into a peer benchmarking overlay comparing PAGE Industries with other consumer apparel peers like Trent, Aditya Birla Fashion, and Arvind Fashions to highlight sector rotation opportunities?