Stock Price Movement and Market Context
On the day the new low was recorded, Page Industries Ltd's share price underperformed its sector by 0.31%, closing with a day change of -1.44%. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex, despite a negative opening and a fall of 276.13 points (-0.46%) to 85,363.92, remains close to its 52-week high of 86,159.02, just 0.93% away, and is trading above its 50-day and 200-day moving averages.
Performance Over the Past Year
Page Industries Ltd has experienced a challenging 12 months, with its stock price declining by 26.30%, significantly underperforming the Sensex, which gained 7.73% over the same period. The stock’s 52-week high was Rs.50,470.60, highlighting the extent of the recent correction. Over the last three years, as well as the past one year and three months, the stock has also underperformed the BSE500 index, reflecting a broader trend of subdued returns relative to the market.
Financial Metrics and Valuation
The company’s latest quarterly earnings per share (EPS) stood at Rs.17.52, marking the lowest quarterly EPS in recent periods. Despite this, Page Industries maintains a strong return on equity (ROE) of 54.2%, indicative of robust profitability. However, the stock’s valuation remains elevated, with a price-to-book (P/B) ratio of 28.3, which is considered very expensive relative to its peers’ historical averages. The price-to-earnings-to-growth (PEG) ratio is 2.3, suggesting that the stock’s price growth has outpaced earnings growth, which may be a factor in the recent price correction.
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Sector Position and Market Capitalisation
Page Industries Ltd holds a dominant position in the Garments & Apparels sector, with a market capitalisation of approximately Rs.39,836 crore, making it the largest company in the sector. It accounts for 24.70% of the sector’s total market cap. The company’s annual sales of Rs.5,018.54 crore represent 12.11% of the industry’s revenue, underscoring its significant market presence.
Long-Term Financial Strength
Despite recent price pressures, the company exhibits strong fundamental metrics. Its average return on equity over the long term is 45.83%, reflecting consistent profitability. Operating profit has grown at an annual rate of 30.74%, demonstrating healthy growth in core earnings. Additionally, the company maintains a low average debt-to-equity ratio of 0.02 times, indicating a conservative capital structure with minimal leverage.
Institutional Holdings and Market Sentiment
Institutional investors hold a substantial 52.45% stake in Page Industries Ltd. This level of institutional ownership suggests that investors with significant analytical resources continue to maintain exposure to the stock, despite the recent price decline. Such holdings often reflect confidence in the company’s underlying fundamentals, even as the stock price adjusts.
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Mojo Score and Rating Changes
Page Industries Ltd currently holds a Mojo Score of 44.0, with a Mojo Grade of Sell as of 23 Sep 2025, downgraded from a previous Hold rating. The market cap grade stands at 2, reflecting its size relative to other companies. These ratings indicate a cautious stance based on recent performance and valuation metrics.
Summary of Key Concerns
The stock’s decline to a 52-week low is influenced by a combination of factors including its expensive valuation metrics, underperformance relative to the broader market and sector, and a recent dip in quarterly earnings per share. While the company’s fundamentals remain strong in terms of profitability and growth, the premium valuation and subdued price performance have weighed on investor sentiment, contributing to the current price level.
Market Environment
The broader market environment has been mixed, with the Sensex experiencing a modest decline but maintaining a position near its 52-week high. This divergence between Page Industries Ltd and the overall market highlights sector-specific and company-specific dynamics impacting the stock’s performance.
Conclusion
Page Industries Ltd’s stock reaching Rs.35,300 marks a notable point in its price trajectory, reflecting a period of adjustment amid valuation pressures and relative underperformance. The company’s strong long-term fundamentals and market leadership contrast with the recent price weakness, underscoring the complex interplay of factors influencing its stock price.
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