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Citi on Thursday maintained its sell rating on Page Industries (NSE:PAGE) Ltd. (PAG:IN) with a price target of INR37,200.00, citing persistent weak demand conditions. The rating follows investor meetings with Page Industries’ management as part of Citi’s India Consumption Tour.
The company’s executives acknowledged the current demand environment "remains weak/not buoyant," according to Citi’s research note. While the fourth quarter benefited from early Eid celebrations, the first quarter is experiencing some impact from geopolitical developments.
Page Industries has largely completed its channel inventory correction and rationalization, with primary sales now expected to track secondary sales patterns. This inventory adjustment had been a factor affecting the company’s recent performance.
Citi noted that Page Industries faces margin pressure in fiscal year 2026 due to anticipated higher employee costs and increased IT spending. The company’s margins are likely to remain within the 19-21% range, compared to 21.5% in fiscal year 2025.
The innerwear manufacturer is looking to expand its international business to represent 2% of overall revenue, up from its current contribution of 0.5%, as part of its growth strategy.
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