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Here's the reason why Page Industries shares slumped 9 percent in trade today

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Shares of Page Industries were down about 7% intraday after the company reported its December 2018 quarter results

The stock of Bengaluru-based Page Industries was down about 7% during the opening bell today. The third-quarter results for the fiscal year 2019 were quite assuring indicating a rebound performance by the company since the first quarter results. The Jockey manufacturer reported a 22.2 percent increase in its net profit for the December 2018 quarter at Rs 101.9 crore, compared to Rs 83.4 crore a year ago.
Page Industries closed at Rs 21,830.00, down 9 percent on NSE from its previous closing. While on BSE, the stock price is at Rs 21,982.20, down 8.27% from its earlier closing. However, Page shares fell as much as 7.23 percent to Rs 22,253.50 per share intraday on NSE.
This movement is on the back of profit-booking, which was also noticed yesterday despite its healthy performance this time. Page had delivered a very disappointing second-quarter earnings which saw the stock falling down by 40 percent from its record high levels earlier. Amongst its peers, Page Industries stands with the most expensive valuations with P/E of 67.77. Other brands like Dollar Industries, Lux Industries and Rupa are in the P/E range of 20-30.
Motilal Oswal maintained a “Neutral” stance on Page Industries, with a price target of Rs 25,755 per share. According to the brokerage, volume growth was on the back of festive mismatch, which impacted Page in Q2FY19, but worked in its favor in Q3FY19. In its view, Page remains a compelling investment case in the Indian consumer space, with better earnings growth compared to peers and healthy RoCEs. “However, valuations at 50.8x FY20E EPS leave little room for upside from a one-year perspective,” it said.
Page’s revenue from operations during the third quarter rose 18.9 percent to Rs 738.3 crore as against Rs 621 crore in same period last year. EBITDA (earnings before interest, tax, depreciation and amortisation) increased 28.3 percent year-on-year to Rs 165.2 crore. Margin expanded to 22.4 percent against 20.7 percent in year-ago.

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