HSBC initiates Page Industries stock with reduce rating on growth concerns

Published 20/06/2025, 06:54
HSBC initiates Page Industries stock with reduce rating on growth concerns

Investing.com - HSBC initiated coverage on Page Industries (NSE:PAGE) Ltd. (PAG:IN) with a reduce rating and a price target of INR41,450.00 on Friday.

The research firm cited concerns about moderating growth drivers for the Indian innerwear and athleisure company, which manufactures and markets Jockey products in India. HSBC expects Page’s revenue growth to slow to a 10% compound annual growth rate from fiscal year 2025 to 2028, compared to 17% from fiscal 2020 to 2023.

HSBC noted that Page’s market share expansion in men’s innerwear is slowing due to Jockey’s already high penetration rate of over 50% and increasing competition from smaller rivals. The firm also highlighted that Page’s conservative approach in women’s innerwear, with limited inventory and styles, has created opportunities for other brands to gain market share.

The athleisure segment, which HSBC described as Page’s most promising category, experienced significant growth during the COVID-19 pandemic. However, the research firm does not expect this growth trajectory to continue, citing the company’s collections that "lack depth and clear positioning."

Page Industries holds exclusive licenses for manufacturing and distribution of Jockey products in India, and has been a market leader in the premium innerwear segment for several years.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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