After Page Industries reported a 59% year-on-year (YoY) fall in internet revenue for the quarter ended March 31, 2023, the inventory tumbled 15% in Friday’s early commerce.

Brokerages stay cut up on the inventory outlook as Morgan Stanley has an ‘Overweight’ stance on the counter whereas Nuvama recommends ‘Reduce’. Kotak however has a ‘Sell’ score on the inventory.

On Thursday, Page Industries reported a internet revenue of Rs 78 crore for the January-March quarter which was down 59% from Rs 190 crore posted in the identical interval final 12 months. On a sequential foundation, internet revenue declined 37% from Rs 124 crore reported within the December quarter.

Revenue from operations, in the meantime, got here in at Rs 969 crore through the March quarter, down 13%, in contrast with Rs 1,111 crore within the corresponding quarter of final 12 months.

The firm’s board has additionally declared a fourth interim dividend of Rs 60 per fairness share for the 12 months 2022-2023.

At 9.45 am, the inventory was buying and selling at Rs 36,127.95, down 12.18% on BSE. It hit the day’s low of Rs 34,968.60.

Here’s what prime brokerages suggest on the inventory:

Morgan Stanley: Overweight | Target: Rs 43,068
Morgan Stanley maintained an ‘Overweight’ stance on the inventory and put a worth goal of Rs 43,068. Q4FY23 efficiency was weaker and missed Morgan Stanley’s estimates. Revenue development will seemingly be weak for the subsequent two quarters. Margin restoration ought to result in income development.
Kotak Institutional Equities: Sell | Target: 33,000
We revise down our FY2024-25 EPS estimates by 20-24%, as we bake in a weak 4QFY23 efficiency and continued subdued demand. Retain SELL with revised FV of Rs 33,000 (Rs 35,000 earlier); roll-forward however. Page Industries is backed by a powerful crew and can finally bounce again; we consider our FV adequately captures this optimism.

Nuvama: Reduce | Target: Rs 36,800
We downgrade Page Industries (Page) from ‘HOLD’ to ‘REDUCE’ because the latest inventory run-up shouldn’t be commensurate with its feeble Q4FY23 efficiency (income/EBITDA down 13%/50%; 35% consensus EBITDA miss). This stems from a mixture of a weak market setting and ARS implementation. Factoring in the identical, we trim our FY24E PAT by 23%; FY25E PAT minimize is far decrease at 6% as we count on the implementation to be transient with development seemingly bettering H2FY24 onwards and persevering with into FY25. Our revised DCF-based TP is Rs 36,800 (49x FY25E PE).

(Disclaimer: Recommendations, options, views and opinions given by the specialists are their very own. These don’t signify the views of Economic Times)

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