Motilal Oswal is bullish on Page Industries has recommended buy rating on the stock with a target price of Rs 27490 in its research report dated February 23, 2018.
Expansion of Exclusive Brand Outlets (EBOs) is happening at a massive pace. The company is adding ~80 outlets in February/March 2018 and likely another 500 in FY19, taking the total EBO count to ~1,000 by end-FY19. After forming ~15% of sales in FY17, EBOs are expected to contribute ~40% of sales by FY20 â€“ the year when all the new EBOs will complete at least a year of operations.
Sharply increased pace of EBO expansion and increased outsourcing reflect managementâ€™s confidence on future prospects and also have positive implications for incremental RoCE improvement. We maintain Buy with a TP of INR27,350 based on 50x Marâ€™20E EPS, at a 10% discount to three-year average P/E.
Disclaimer:Â The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.