Page Industries Ltd.
Located in Bangalore-India, is the exclusive licensees of JOCKEY International Inc. (USA) for manufacture and distribution of the JOCKEY® brand Innerwear/Leisurewear for Men and Women in India, Sri Lanka, Bangladesh, Nepal, and UAE. Page Industries is also the exclusive licensee of Speedo International Ltd. for the manufacture, marketing, and distribution of the Speedo brand in India.
Speedo is the number one brand and product choice for swimmers around the world. While swimwear in India is still at a nascent stage, the prospects for this category are exciting. Page Industries is proud to partner with this brand. With Speedo’s product technology and marketing leadership, juxtaposed with Page Industries’ expertise in manufacturing and distribution, this will be a very promising partnership.
The stock is trading at exuberantly high Price to Earning ratio (PE) of 50. For value investors, who follow Mr. Benjamin Graham stock appears to be overvalued, even after a stock is available at 50% discount from its all time high price of Rs.17000. Operating profit margin is 30%, Return On Equity(ROE) is nearly 60% and sales growth is 30%. For investors, who favor growth based stock selection, the stock looks attractive for accumulating for longer term portfolio.
Further, you can read about Benjamin Graham Style of value investing in this book
The stock was trading inside the channel and chart shows, classic text book example of Channel technique. Recently stock price broke the channel in the daily time frame and within short period bears took advantage of the opportunity to drag the stock to new 52 weeks low on the Leap year day.
Technical setup indicates any pull back rally will be used by bears to shatter the confidence of the bulls. Any negative sentiment can drag down the stock towards 9200-8700 region. Remember margin of safety is crucial in any type of investment and don’t try your luck over your finances.
Information presented in the above article is available in public domain and it should not be treated as “Research Report”
Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI “Any person who makes the recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in PAGE.