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PAGEIND - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.7

Last Updated Time : 19 Mar 26, 07:10 pm

Fundamental Rating: 3.7

Stock Code PAGEIND Market Cap 35,259 Cr. Current Price 31,600 ₹ High / Low 50,590 ₹
Stock P/E 45.5 Book Value 1,263 ₹ Dividend Yield 2.85 % ROCE 59.4 %
ROE 48.5 % Face Value 10.0 ₹ DMA 50 33,188 ₹ DMA 200 38,295 ₹
Chg in FII Hold -2.49 % Chg in DII Hold 2.26 % PAT Qtr 215 Cr. PAT Prev Qtr 195 Cr.
RSI 46.8 MACD -754 Volume 18,119 Avg Vol 1Wk 18,254
Low price 29,800 ₹ High price 50,590 ₹ PEG Ratio 4.23 Debt to equity 0.19
52w Index 8.66 % Qtr Profit Var 5.20 % EPS 672 ₹ Industry PE 21.2

📊 Financial Overview

  • Revenue & Profitability: Quarterly PAT rose to ₹215 Cr. from ₹195 Cr. (+5.2%). ROE (48.5%) and ROCE (59.4%) are exceptionally strong, reflecting outstanding efficiency and profitability.
  • Debt & Liquidity: Debt-to-equity at 0.19 indicates low leverage, ensuring financial stability.
  • Valuation: P/E of 45.5 is significantly higher than industry average (21.2), suggesting overvaluation. P/B ~25.0 indicates premium pricing relative to book value. PEG ratio (4.23) highlights expensive growth expectations.
  • Technical Indicators: RSI at 46.8 shows neutral momentum; MACD at -754 indicates bearish trend. Current price ₹31,600 is below DMA 50 (₹33,188) and DMA 200 (₹38,295), signaling weakness.

🏢 Business Model & Competitive Advantage

  • Page Industries (PAGEIND) is the exclusive licensee of Jockey International in India, manufacturing and distributing premium innerwear, leisurewear, and sportswear.
  • Competitive advantage lies in strong brand recognition, premium positioning, and wide distribution network across India.

💡 Entry Zone Recommendation

  • Entry zone: ₹30,000–₹32,000, near support levels.
  • Attractive for long-term investors due to strong fundamentals, but caution advised given high valuation.

📈 Long-Term Holding Guidance

  • Suitable for long-term holding due to strong ROE/ROCE and brand leadership.
  • Upside potential tied to premium apparel demand and expansion in lifestyle categories.

✅ Positive

  • Exceptional ROE (48.5%) and ROCE (59.4%).
  • Low debt-to-equity ratio (0.19).
  • Dividend yield of 2.85% adds investor appeal.
  • Quarterly PAT growth (+5.2%).
  • DII holdings increased (+2.26%).

⚠️ Limitation

  • High P/E (45.5) compared to industry average (21.2).
  • P/B ratio (~25.0) indicates expensive valuation.
  • Stock trading below DMA 50 and DMA 200, showing bearish trend.

📉 Company Negative News

  • Bearish technical indicators (MACD negative, price below DMA).
  • FII holdings reduced (-2.49%).

📈 Company Positive News

  • Quarterly PAT increased from ₹195 Cr. to ₹215 Cr.
  • DII holdings increased (+2.26%).
  • Strong dividend payout supports investor confidence.

🏭 Industry

  • Apparel industry P/E at 21.2, much lower than Page Industries’ valuation.
  • Sector growth driven by rising demand for branded innerwear, lifestyle apparel, and premium positioning.

🔎 Conclusion

  • Page Industries is fundamentally strong with exceptional efficiency and brand leadership but trades at expensive valuations.
  • Entry near ₹30,000–₹32,000 is attractive for long-term investors; recommended as a cautious holding with strong dividend support and sector tailwinds.

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