Page Industries

Highlights:
- Lack of clarity on accounting methodologies and elevated valuations could restrict re-rating in the near-term.
- Top-line growth will be driven by network expansion and new products.
- Adoption of asset-light manufacturing and retailing should have a positive rub-off on margins.
- Competition from foreign brands is a key risk.


There is a general theme giving by many financial consultants that buy right sit tight but the market, in general, doesn't like to be fooled. Since last year, we see that the market doesn't care about the name of the company or the group anything bad in corporate governance or any type of clever movements are beaten down heavily. If I speak technically in last 2 years stock has given tremendous returns it came in bull mode around 14000 in 2017 and has made high of 36370. And since September 2018 we are seeing a correction. In the last few days, we came around the news that some accounting policies have been changed and the company is facing trouble due to GST and Destocking of inventories. The company may also face competition from other Retail brands like Aditya Birla Fashion. I as an Independent Analyst believe that you cannot always go by the name, nobody knew in that time that HDFC, Infosys, Eicher Motors or any other such company would reach such heights, but we are seeing a correction in mostly all Auto Sector Companies. 

The first signs of trouble emerged last year when the company said its volume growth came to a standstill (down 0.1%) in Q2. The stock has been under-performing since. Volumes recovered in Q3, registering a 12% growth. This quarter had the benefit of a delayed festive season. However, the volumes did not translate into higher revenue growth. According to analysts, adjusted for accounting changes, revenue growth in Q3 stood at 14%. This is less than the 17-22% growth the company had been clocking in Q1 FY18 to Q1 FY19. Revenues in Q2 had increased by 10%. Cumulatively, revenue in the first nine months of FY19 is up 15.5%. This has not been adjusted for the accounting change in Q3. In the previous two fiscal years, revenues increased by 19-20% in the first nine months. Nevertheless, this 15.5% revenue growth is nothing to scoff at. However, tracking its historical growth rates and an expansion in its product portfolio and retail network, investors are expecting better growth rates in the coming quarters.


L

 If we don't go into much of fundamentals and only focus on technicals then we can expect the stock to reach levels of around 17000. The stock has support at 19900 in daily charts then another straight fall will come if the stock doesn't take support. (This stock is trading at 48 times price-to-earnings and seven times market capitalization/sales on FY20E estimates.)  


XL

XL
For More Visit: https://www.akfintech.xyz/ 

Comments

Post a Comment

Popular posts from this blog

Tata Motors

Image
In markets to really earn or beat the market estimates you have to use your own logic and find out some basics, when stocks like MRF, Eicher Motors, Page Industries started their journey nobody had predicted but good business give good returns. And for trading or investing purpose we have to enter the stock at cheap prices, otherwise every day the share will go down. We can see in the chart that stock had made high of Rs.695 in 1995 just imagine that era there was no ready information available like today at our fingertips. The number of cars which we see today are sold on loans, though it doesn’t matter to the manufacturer, we have many numerous problems like pollution, traffic, parking problems, etc. and most eminent people are seeing a downtrend in Auto Sector because they see Electric Cars as futures. So those companies who will adapt to such new Technology will run another 50–70 Years until something new comes to our market. From there stock made a low of Rs.28.55 in 2003, but...
Read more

Why Rich gets Richer and Poor more Poorer!

Since the evolution of mankind, humans have developed and improved all the systems in all spheres. Many human beings have tried to conquer the world but at the end wasn't able to enjoy that victory or wealth happily. Because I believe that nature has created Earth to be enjoyed and lived by all creatures. But unnecessary heist of mankind has created a vacuum in all the resources. We come across many problems but how many are there who are actually working to solve the problem permanently? Animals and Birds use resources only up to the extent they need but we humans are constantly thriving to explore the Universe to get more and more. In every Religion, they have said how to live but how many are living that way? We say that money works for money just because that Rich class have captured almost every natural source of wealth Earth has given, do you think that selling any XYZ commodity and earning billions will fill stomach? No, we have to put food into the stomach and not currency...
Read more