The brokerage has initiated coverage with a “buy” rating on Page Industries, with a price target of ₹52,000 per share. This is a 14.5% upside from its previous closing price of ₹45,430 apiece.
This is the fourth highest price target for Page Industries on the street after Motilal Oswal (₹57,500), Elara Capital (₹52,268), and Morgan Stanley (₹52,064).
Normalisation of channel inventory
Goldman Sachs said normalisation of Page Industries’ channel inventory sets up a favourable external environment for the company.
It said that after two years of excess inventory, there are signs that industry inventory levels have normalised. “We believe this should lead to Page Industries’ sales growth converging with retail level growth in financial year 2026, as the distribution channel correction drag fades out,” Goldman Sachs said in its note.
Excess inventory on peer companies’ balance sheets has also moderated, indicating their unsustainable channel practices are likely behind, it said, adding that this should lead to a better trade environment for Page Industries.
The brokerage also expects Page Industries’ inner wear segment sales to grow at a compounded annual growth rate (CAGR) of 12.2% over financial year 2025-2028, in comparison to the 8% growth seen between financial year 2018 to financial year 2025.
Outer wear segment to recover
Goldman Sachs expects Page Industries’ outer wear segment to witness consistent recovery in growth, signs of which were visible in the fourth quarter of the financial year 2025, when the segment was only slightly below the company’s volume growth of 8.5% from last year.
Recent launches under the ‘JKY Groove’ range signal the company’s intent to launch more on-trend outer wear/athleisure products, which can help drive growth, Goldman Sachs said.
Page Industries’ management plans to accelerate exclusive brand outlet (EBO) store network growth to 200-250 stores per annum over the next three years in comparison to 93 and 71 stores over FY24 and FY25, respectively. This will also be a key driver of outer wear segment’s growth, according to Goldman Sachs.
The long-term opportunity for the EBO network expansion remains large, it added.
Of the 23 analysts that have coverage on the stock, nine have a “buy” rating, five a “hold” rating and 11 have a “sell” rating. Goldman Sachs’ target is the fourth-highest after Morgan Stanley, Elara Capital and Motilal Oswal.
Shares of Page Industries Ltd. gained 4.3% to hit an intraday high of ₹47,385 apiece on Tuesday, June 24. The stock was up 2.34% at 46,495 apiece at 10.05 am. It has declined 2.8% this year, so far.
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