On Friday, Elara Securities India adjusted its stance on Page Industries Ltd. (PAG:IN), revising the stock's rating to "Accumulate" from the previous "Buy" recommendation. The firm maintained its price target for the company at INR 44,098.00. The decision follows a substantial 17.9% increase in the stock's price over the last three months.
Page Industries, known for its ability to sustain elevated sales levels attained during the pandemic era, has demonstrated a consistent revenue compound annual growth rate (CAGR) of 10.3% from fiscal year 2019 to 2024.
Elara Securities anticipates that the company will see revenue and profit after tax (PAT) CAGRs of 11.1% and 17.2%, respectively, for the fiscal years 2024 to 2026, which is a slight improvement over the past five-year CAGR.
The firm has decided to retain its fiscal year 2025 and 2026 estimates, citing expectations of a demand increase in the upcoming quarters. The price target is based on a price-to-earnings (P/E) multiple of 62.8 times the estimated earnings for fiscal year 2026.
Elara Securities highlighted a key risk factor for Page Industries, which is the potential for a sustained slowdown in demand over the long term. This caution underpins the revised rating, even as the company's financial projections remain optimistic.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.