‘Jockey’ maker Page Industries share price hits lower circuit on weak Q4 results; drops 10%


Page Industries shares were locked at 10% lower circuit, and were trading near 52-week low on Friday’s early trade after the company reported weak set of numbers for quarter that ended in March. Page Industries shares opened at 37025.55 apiece on BSE.

According to Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One, prices have started with 10% lower circuit, now the trading will start post 15 mins halt, as of now one should avoid this counter as we may see further weakness, any bounce is likely to face supply pressure, whereas the next key support would be 35500 that is March month swing lows.

At 09:33 IST, shares of the company were down over 14%. The stock touched a intraday high of 37025.55 and low of 34968.60 on BSE.

Analysts believe that the stock is down more than 14% and has broken below March swing low of 35500, prices may remain under pressure. Further, traders should avoid trying to catch falling knife, next support is at 34300 resistance at 38000.

The company on Thursday announced that its net profit for the March quarter decreased by 59% to 78 crore. During the same time period last year, it stood at 190 crore. Sequentially, the net profit dropped from 124 crore recorded in the December quarter by 37%.

The March quarter under review had a 13% decrease in revenue from operations, coming in at 969 crore, as compared to 1,111 crore in the same quarter last year.

Operating EBITDA decreased by 50% in the fourth quarter, falling to 134 crore from 2,67 crore. EBITDA is down 30% year over year.

The company’s board has also declared a fourth interim dividend for the years 2022-2023, valued at 60 per equity share.

Brokerage house, Nuvama Institutional Equities has downgraded the stock to ‘reduce’ from ‘hold’ due to its weak Q4FY23 performance.

“This stems from a combination of a weak market environment and ARS implementation. Secondary sales though were flat YoY. Page expects the ARS implementation hangover to sustain for a few quarters. Gross margins should improve hereon,” said the brokerage in its report.

‘Jockey’ maker Page Industries’ net halves

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Article Source:Money Control

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