Near-term demand worries likely to weigh on Page Industries stock

Brokerages have mixed view after correction in stock price

Since its October high last year, the stock of innerwear major Page Industries has been on a downtrend, shedding a little over 30 per cent of its market value. Higher competitive intensity, muted volumes, pressure on margins, and rich valuations have led to downgrades for the stock.

The October-December quarter (third quarter, or Q3) performance was lower than the Street’s expectations — both on volumes/sales and margins. While volumes fell 11 per cent over the year-ago period, sales saw muted 2.8 per cent growth. However, the volume fall came on the back of a high base, with the year-ago quarter