Page Industries Ltd has been downgraded from Buy to Hold as of 9 July 2026 by MarketsMOJO, reflecting a nuanced assessment across quality, valuation, financial trends, and technicals. The stock closed at ₹40,581.80 on 9 July 2026, down 2.05% from the previous close of ₹41,431.55, trading within a range of ₹39,522.75 to ₹41,999.35. Over the past week, the stock declined by 5.30%, significantly underperforming the Sensex's 0.98% fall, while year-to-date returns stand at 12.55% compared to the Sensex's negative 9.95% return. However, over the last year, the stock has underperformed with a -16.59% return compared to the Sensex's -8.13% decline, highlighting investor caution. The stock's recent decline is particularly notable given that Friday's broader market rally saw the Nifty 50 up more than 1%, with India VIX collapsing over 6% and every sectoral index in green, making Page Industries one of the day's notable losers.
Multiple brokerages have upgraded their price targets for Page Industries following positive outlook expectations. Goldman Sachs Research increased its target price to ₹48,000 from ₹45,000 based on the price hike taken in May and expectations of sustained volume growth momentum. Kotak PCG Research raised its target price to ₹37,000 from ₹34,500 while maintaining a sell rating due to expensive valuations, with the stock trading at 45 times FY28 earnings estimates. Despite the bullish outlook, brokerages expect double-digit volume growth coupled with realisation improvement to drive mid-teens revenue growth in FY27.
According to Kotak PCG Research, gains for Page Industries in the current year will be led by faster growth in the women's and athleisure categories. The company is expected to benefit from market consolidation resulting in lower competitive pressures, as several brands have exited general trade, reduced geographic presence, or cut back on discounting and marketing spends amid profitability pressures. JM Financial Research notes that this creates incremental headroom for category leaders such as Page Industries, supported by stronger supply chain, distribution network and brand investments. The company is also expected to see traction in the e-commerce segment, which now contributes 15% of revenue.
Kotak PCG Research has increased its revenue estimates for FY27-29 by 5-7% and earnings per share projections by 2-4%. The brokerage expects realisations to improve led by price hikes and an improving mix. Goldman Sachs Research points out that the recovery in volume growth is being led by structural factors, with outperformance by exclusive branded outlets compared with multi-brand outlets and distributor channels boding well for the long term. The company reiterated its long-term operating profit margin guidance of 19-21% despite plans to increase investments in technology and marketing.
During Q4, inflationary pressures in key input costs, particularly cotton and other raw materials, remained elevated. However, cotton prices have come down from 85 cents to 76 cents per pound, which could recede pressure in the near term. The company mitigated the impact through strategic sourcing initiatives, supply chain optimisation measures, operational efficiency improvements and selective pricing interventions. Operating profit margin came in at 20.8%, down 62 basis points year-on-year and 214 basis points sequentially. Recent financial results have been underwhelming, with Profit Before Tax excluding Other Income (PBT LESS OI) declining by 9.4% to ₹220.63 crores compared to the previous four-quarter average, and Profit After Tax (PAT) falling by 7.8% to ₹178.73 crores in the same period.
