Brokerage firm Motilal Oswal has maintained a positive outlook on Page Industries, setting a target price of Rs 43,000. This comes as the innerwear manufacturer navigates a challenging first quarter, marked by a slight dip in profits and margin pressure despite steady revenue growth.
Motilal Oswal Financial Services has reaffirmed its bullish stance on Page Industries, setting a target price of Rs 43,000 for the stock. This outlook comes as the company, known for the Jockey brand, works to balance long-term brand expansion with recent short-term financial pressures.
The brokerage bases its optimistic view on the company's transition from an innerwear specialist to a diversified lifestyle brand. Key growth engines cited in the report include the adoption of an Automated Replenishment System to manage inventory more efficiently and continued investment in digital infrastructure. These steps are expected to streamline operations and support steady revenue growth in the coming years.
However, the company’s recent performance highlights the challenges currently facing the business. In the first quarter of fiscal year 2027, Page Industries reported revenue of Rs 1,420 crore, a growth of 7.9% compared to the previous year. Despite this increase in sales, net profit dipped by approximately 3.5% to 4%, landing at Rs 193 crore. A major contributor to this performance was the contraction of operating profit margins, which slipped to 20.3% from 22.4% in the same period last year. This pressure on margins is largely attributed to higher raw material costs and logistical constraints that have impacted the entire sector.
To manage these costs, the company implemented a 2% price increase in May 2026. Analysts are now monitoring the second quarter of fiscal 2027 to see if these price hikes effectively offset inflationary pressures and support profit margins. The company’s ability to drive double-digit volume growth throughout the year, especially through new segments like the JKY Groove line, remains a key factor that investors are watching.
From a market perspective, the stock has recently traded near Rs 35,800. Investors are currently weighing the company's long-term expansion strategy against immediate risks, such as the slower-than-expected recovery in domestic consumption. Additionally, the company trades at a premium valuation compared to some peers, which is a common monitorable for those tracking entry points. While the brokerage maintains a long-term positive view, the actual stock price movement will likely depend on the company's ability to show consistent margin improvement and sustained consumer demand in the coming quarters. The company also recently rewarded shareholders with a first interim dividend of Rs 200 per share, which had an August 19, 2026, record date.