Citi Research has upgraded Page Industries to a 'Buy' rating with a target price of Rs 47,700. The broker expects the company to see better volume growth and reduced inventory levels in the coming year, signaling a potential recovery in operations.
What Happened
Citi Research has revised its outlook on Page Industries, the company behind the Jockey brand in India. The brokerage upgraded the stock to a 'Buy' rating, moving it up from its previous 'Sell' position. Alongside this change, the target price has been increased to Rs 47,700, a significant jump from the previous estimate of Rs 34,100.
Why This Matters For Investors
The decision to upgrade the stock comes from the view that Page Industries has moved past its most difficult operational challenges. Citi analysts expect the company to achieve a 9.6% increase in volume growth for the fiscal year 2027. This optimism is driven by a few key changes. First, the company has implemented price hikes of about 4.5% year-to-date, which is expected to support revenue. Second, the company is shifting its focus toward a better product mix.
Perhaps most importantly, the brokerage expects the time products spend in the sales channel (inventory) to drop from 60–65 days to roughly 40 days. Faster inventory turnover generally helps companies manage cash more efficiently and can lead to stronger sales momentum.
Financial Performance Review
In the quarter ended March 31, 2026, Page Industries reported a net profit of Rs 178.73 crore, which is a 9% increase compared to the same time last year. Revenue from operations also saw growth, rising 14% to Rs 1,252.6 crore. Sales volume, a critical metric for the company, grew by 10.8%, reaching 54.5 million pieces.
For the full fiscal year 2026, the company posted a net profit of Rs 763.82 crore on a total income of Rs 5,310.67 crore. These numbers suggest a stable performance, but the company is also dealing with cost pressures.
Risks And Cost Pressures
While the growth outlook appears positive, investors should remain aware of the expenses. For the March quarter, total expenses rose by 14.72% to Rs 1,031.96 crore. A major factor contributing to this is persistent inflation in input costs, particularly for cotton, which is a primary raw material for apparel makers. The company’s management has noted that they are using strategies like supply chain optimization and careful pricing to manage these higher costs.
What Investors Should Track
The key monitorables for shareholders will be the actual volume growth in coming quarters to see if it matches the 9.6% projection. Additionally, investors may want to watch for updates on inventory levels to confirm if the company successfully brought down the time goods sit in the channel. Finally, changes in cotton prices will be an important factor to track, as any sharp increase could put renewed pressure on profit margins.