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Page Industries Q2 Review - Strong Topline Growth, Fair Valuations Limit Upside: Motilal Oswal

Page Industries Q2 Review - Strong Topline Growth, Fair Valuations Limit Upside: Motilal Oswal

<div class="paragraphs"><p>Speedo’s LZR Racer swimsuits, marketed by Page Industries Ltd. in India, are displayed on mannequins at a shop. (Photographer: Tomohiro Ohsumi/Bloomberg).</p></div>
Speedo’s LZR Racer swimsuits, marketed by Page Industries Ltd. in India, are displayed on mannequins at a shop. (Photographer: Tomohiro Ohsumi/Bloomberg).

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Page Industries Ltd. reported a strong performance in Q2 FY22, with all segments delivering a sales growth of ~40% YoY on a weak base.

With in-home consumption dominating in recent quarters, the athleisure segment has been a key driver on a two year compound annual growth rate basis.

During the same period men’s innerwear has seen a tepid performance after declining sharply in H1 FY21. Two-year sales CAGR of ~18% is likely to have been led primarily by:

  1. an extraordinary and unsustainably high growth in the athleisure segment, driven by in-home consumption during the lockdowns,

  2. significant and ongoing expansion in distribution network,

  3. improved growth in women’s Innerwear compared to its four to five year average, and

  4. reportedly strong traction in the small kids innerwear segment in which Page Industries has been a recent entrant.

Click on the attachment to read the full report:

Motilal Oswal Page Industries Q2FY22 Result Update.pdf

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