**Page Industries** - Q4 FY20 (Audited –Cons)
CMP: 19,146
Total revenue from operations 541.2 Cr
608 Cr (-11.01%) YoY | 794 Cr (-31.85%) QoQ
Year ending revenue: 2,945 Cr Vs. 2,852 Cr (-3.24%)
Net Profit of 31.02 Cr
74.98 Cr (-58.62%) YoY 87.01 Cr (-64.39%) QoQ
Year ending Net profit: 343 Cr Vs. 394 Cr (-12.91%)
EPS (in Rs.) 27.82
67.23 YoY | 78.02 QoQ
Year ending EPS: 307.22 Vs. 353.19
View: Result is declined and below expectation. YoY revenue declined and profit also declined in this quarter.
**Business Updates & Highlights**:
Q4FY20 EBITDA is around INR 58.1 Cr Vs. 127.6 Cr in Q4FY19 Vs. 138.8 Cr in Q3FY20 therefore declined by 54.4% in YoY and declined by 58.2% in QoQ. EBITDA margin is around 10.7% Vs. 20.8% Vs. 17.3%.
FY20 EBITDA is around INR 581 Cr Vs. 616 Cr in FY19 therefore declined by 5.7% in YoY. EBITDA margin is around 19.7% Vs. 21.6% in FY19.
Q4FY20 Gross margin remains strong and steady at 38.3%. FY20 Gross margin remains strong and steady at 39.3%.
**Financial**
ROE and ROCE is around INR 48% and 69% respectively and book value per share is around INR 760 and share is currently trading at 25.1x of its book value. Company is currently trading at annualized PE of 63 which is high as per Industry benchmark. Promoter holding is around 48.3% in the company which is good and stable. FIIs and mutual fund hold around 29.1% and 8.4% in the company which is decreased by FIIs and increased by mutual fund. Cash and cash equivalent from operating activities as of March 2020 is around INR 516 Cr Vs. 230 Cr as of March 2019 (Very strong).
Position: Share support price is INR 18,150. Short term share can correct and outlook is bearish. Long term investor should continue with the company.
**Share View**: Share price high 26,891 (52 week) and now 19,150. Page Industries is the exclusive licensee of JOCKEY International Inc. (USA) for manufacture, distribution and marketing of the JOCKEY® brand in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar and the UAE. Page Industries is also the exclusive licensee of Speedo International Ltd. for the manufacture, marketing and distribution of the Speedo brand in India.
Opportunities: Positive cash flows from operations. Jockey is the company’s flagship brand and a market leader in the premium innerwear and leisure wear category. The brand is distributed in 2850+ cities & towns and available in 66,000+ Multi Brand Outlets, 750+ Exclusive Brand Outlets (EBO) with extensive presence in Large Format Stores, as also online. The company also has 6 EBO’s outside India. Speedo brand is available in 1300+ stores including 40+ EBO’s and 40+ Large Format Stores, spread across 150+ cities. Company brand Jockey is very popular among the Youngster and Tier II & Tier III cities as well.
Risk: Negative bottom line and topline growth not only for Q4 but also for FY20. Although Jockey is very strong and popular but highly competition with premium segment brands. Further future growth is very challengeable. Q1FY21 can also be down due to shut down for entire month in April and May also.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.