Research house Ambit has cut target to Rs 17,000 from Rs 18,000 per share and also cut FY20/FY21 EPS estimates by 10 percent to factor growth deceleration.
Shares of Page Industries touched its 52-week low of Rs 17,438.45, falling 5.6 percent intraday on August 9 after the company reported poor numbers in the quarter ended June 2019 (Q1FY20).
The company reported an 11 percent fall in its Q1 net profit at Rs 110.6 crore against Rs 124.4 crore, while its revenue grew 2.4 percent YoY at Rs 835 crore against Rs 815.3 crore.
Earnings before interest, tax, depreciation and amortization (EBITDA) fell to Rs 186.6 crore, and margin contracted to 22.3 percent.
On the back of a poor Q1 show, research house Ambit has target to Rs 17,000 from Rs 18,000 per share and also cut FY20/FY21 EPS estimates by 10 percent to factor growth deceleration.
The firm sees 14 percent sales CAGR over FY19-24 versus 19 percent in FY14-19 and estimates 8%/9%/7% revenue/EBITDA/PAT CAGR over FY19-21.
Credit Suisse has maintained an underperform rating on the stocks and cut target to Rs 15,500 per share.
The company’s Q1 results are weak with volumes down 2 percent and PAT declining 11 percent, said Credit Suisse.
The brokerage cut FY20-21 earnings by 9-11 percent and target multiple to 35x.
The company’s board has declared an interim dividend of Rs 51 per equity share. The record date fixed for the payment of the interim dividend is August 20, 2019.
At 0958 hrs, Page Industries was quoting at Rs 17,612.65, down Rs 864.70, or 4.68 percent on the BSE.
