PAGEIND - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.8
| Stock Code | PAGEIND | Market Cap | 37,932 Cr. | Current Price | 34,080 ₹ | High / Low | 50,590 ₹ |
| Stock P/E | 49.6 | Book Value | 1,263 ₹ | Dividend Yield | 2.64 % | ROCE | 59.4 % |
| ROE | 48.5 % | Face Value | 10.0 ₹ | DMA 50 | 35,567 ₹ | DMA 200 | 40,318 ₹ |
| Chg in FII Hold | -2.49 % | Chg in DII Hold | 2.26 % | PAT Qtr | 195 Cr. | PAT Prev Qtr | 201 Cr. |
| RSI | 44.4 | MACD | -834 | Volume | 42,298 | Avg Vol 1Wk | 19,001 |
| Low price | 31,740 ₹ | High price | 50,590 ₹ | PEG Ratio | 4.62 | Debt to equity | 0.19 |
| 52w Index | 12.4 % | Qtr Profit Var | -0.26 % | EPS | 685 ₹ | Industry PE | 27.5 |
📊 Analysis: Page Industries (PAGEIND) trades at ₹34,080 with a high P/E of 49.6 compared to the industry average of 27.5, indicating overvaluation. Fundamentals are strong with ROE at 48.5% and ROCE at 59.4%, reflecting excellent capital efficiency. EPS of ₹685 is robust, and dividend yield of 2.64% provides steady income. Debt-to-equity is low at 0.19, showing financial stability. However, PEG ratio of 4.62 suggests expensive valuation relative to growth. Technicals are weak (RSI 44.4, MACD negative, trading below DMA 50 & 200), showing bearish momentum. Overall, PAGEIND is a fundamentally strong company but currently overvalued, making it suitable only for long-term investors on dips.
💡 Entry Price Zone: Ideal accumulation range is ₹31,800–₹33,000, closer to the 52-week low (₹31,740). Current price is above fair value zone, so fresh entry should be on dips.
📈 Exit / Holding Strategy: If already holding, consider a long-term horizon of 5+ years given strong ROE/ROCE and dividend yield. Exit strategy: partial profit booking near ₹45,000–₹48,000 if valuations stretch, while retaining core holdings for compounding.
Positive
- Exceptional ROE (48.5%) and ROCE (59.4%) show superior capital efficiency.
- Strong EPS of ₹685 supports earnings base.
- Dividend yield of 2.64% provides steady income.
- Low debt-to-equity ratio (0.19) ensures financial stability.
- DII holdings increased (+2.26%), showing domestic institutional support.
Limitation
- High P/E (49.6) compared to industry average (27.5), indicating overvaluation.
- PEG ratio of 4.62 suggests expensive valuation relative to growth.
- Stock trading below DMA 50 (35,567) and DMA 200 (40,318), showing weak technical trend.
- Quarterly PAT slightly declined (-0.26%), showing earnings stagnation.
Company Negative News
- FII holdings reduced (-2.49%), showing declining foreign investor confidence.
- MACD negative (-834), indicating bearish momentum.
Company Positive News
- DII holdings increased (+2.26%), reflecting domestic institutional confidence.
- Dividend yield of 2.64% provides investor returns despite valuation concerns.
Industry
- Industry PE at 27.5, much lower than PAGEIND’s valuation, suggesting peers may offer better value.
- Apparel and innerwear industry benefits from strong brand positioning and consumer demand.
Conclusion
✅ Page Industries is a fundamentally strong company with excellent ROE/ROCE and consistent dividend yield but currently overvalued. Ideal entry is ₹31,800–₹33,000. Long-term investors can hold for 5+ years to benefit from compounding. Existing holders may book profits near ₹45,000–₹48,000 while retaining core positions for sustained growth.