Rating Overview and Context
On 05 February 2026, MarketsMOJO revised the rating for Page Industries Ltd from 'Sell' to 'Hold', reflecting a modest improvement in the company’s overall assessment. The Mojo Score increased by 6 points, moving from 44 to 50, signalling a more balanced outlook. This 'Hold' rating suggests that while the stock may not currently offer strong upside potential, it is not expected to deteriorate significantly either, making it a neutral option for investors seeking stability amid market fluctuations.
Here’s How the Stock Looks Today
As of 23 February 2026, Page Industries Ltd presents a mixed picture across key investment parameters. The company operates in the Garments & Apparels sector and is classified as a midcap stock. Its current market dynamics and financial health warrant a cautious stance, as reflected in the 'Hold' rating.
Quality Assessment
The quality grade for Page Industries Ltd is below average, indicating some concerns regarding operational efficiency or consistency in earnings quality. Despite this, the company demonstrates strong long-term fundamental strength, with an average Return on Equity (ROE) of 45.83%. This robust ROE suggests that the company has historically generated substantial profits relative to shareholder equity, a positive sign for long-term investors.
Operating profit has grown at an annual rate of 23.86%, underscoring healthy business expansion. Additionally, the company maintains a very low average Debt to Equity ratio of 0.02 times, reflecting a conservative capital structure and limited reliance on debt financing. These factors contribute positively to the company’s quality profile, even as some operational metrics temper the overall grade.
Valuation Considerations
Valuation is graded as fair, but the stock trades at a premium compared to its peers. With a Price to Book Value ratio of 25.9 and a Return on Equity of 55, Page Industries Ltd is considered very expensive. This elevated valuation reflects high investor expectations for future growth, which may limit upside potential if the company fails to meet these expectations.
Over the past year, the stock has delivered a return of -20.73%, despite profits rising by 15.1%. The Price/Earnings to Growth (PEG) ratio stands at 3.1, indicating that the stock’s price growth is outpacing earnings growth, which could be a cautionary signal for value-conscious investors. Such a premium valuation necessitates careful monitoring of earnings momentum and market sentiment.
Financial Trend and Performance
The financial grade is positive, supported by recent quarterly results. In the half-year ended December 2025, the company achieved its highest Return on Capital Employed (ROCE) at 64.03%, signalling efficient use of capital to generate profits. The Debtors Turnover Ratio reached 30.00 times, indicating strong collection efficiency and cash flow management.
Net sales for the quarter hit a peak of ₹1,386.76 crores, reflecting solid demand for the company’s products. However, despite these encouraging financial trends, the stock’s price performance has been disappointing. It has underperformed the BSE500 index over the past three years, one year, and three months, with a 3-month decline of 15.10% and a 6-month drop of 28.25%. This divergence between operational performance and stock price suggests market concerns about sustainability or external factors impacting investor sentiment.
Technical Outlook
The technical grade is mildly bullish, indicating some positive momentum in the stock price. On 23 February 2026, the stock recorded a modest gain of 0.24% for the day, though it has experienced short-term volatility with a 1-week decline of 2.40% and a 1-month fall of 0.45%. The mildly bullish technical stance suggests that while the stock may see some upward movement, investors should remain cautious given recent volatility and broader market conditions.
Institutional Interest
Institutional holdings stand at a high 52.21%, reflecting confidence from sophisticated investors who typically conduct thorough fundamental analysis. This level of institutional ownership can provide some stability to the stock price and indicates that knowledgeable market participants see value in the company despite recent price weakness.
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What the 'Hold' Rating Means for Investors
The 'Hold' rating for Page Industries Ltd indicates a neutral stance, suggesting that investors should neither aggressively buy nor sell the stock at this time. This rating reflects a balance between the company’s strong fundamental attributes and its current valuation and price performance challenges.
For investors, this means that while the company has demonstrated solid operational metrics and financial discipline, the premium valuation and recent underperformance warrant caution. The stock may be suitable for those with a medium to long-term investment horizon who are willing to wait for clearer signs of sustained earnings growth and market recovery.
Investors should monitor key indicators such as quarterly earnings growth, ROCE trends, and price momentum to reassess the stock’s outlook. Additionally, given the high institutional ownership, any significant changes in their holdings could provide early signals of shifting market sentiment.
Summary
In summary, Page Industries Ltd’s current 'Hold' rating by MarketsMOJO, updated on 05 February 2026, reflects a cautious but balanced view of the stock. As of 23 February 2026, the company exhibits strong long-term fundamentals and positive financial trends, tempered by a high valuation and recent price underperformance. The mildly bullish technical outlook and substantial institutional interest provide some support, but investors should remain vigilant and consider the stock’s premium pricing when making portfolio decisions.
Key Metrics at a Glance (As of 23 February 2026)
- Mojo Score: 50.0 (Hold)
- Return on Equity (ROE): 45.83% average; 55% latest
- Operating Profit Growth: 23.86% CAGR
- Debt to Equity Ratio: 0.02 times (low)
- Price to Book Value: 25.9 (very expensive)
- PEG Ratio: 3.1
- Stock Returns: 1Y -20.73%, 6M -28.25%, 3M -15.10%
- Institutional Holdings: 52.21%
Investors should weigh these factors carefully and consider their risk tolerance and investment horizon before taking a position in Page Industries Ltd.
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