Page’s new product launches will utilise the company’s efficient manufacturing, wide distribution and strong aspirational brand, which will propel revenue growth further (~32% in FY15-18E vs 35% in FY10-15). Its recently initiated IT investments should address the inefficiencies in its distribution channel and hence support scalability across product segments and SKUs.
According to Ambit analyst,
...implied valuation of 50x FY16E EPS (TP revised to Rs13,000 from Rs9,265, up 40%) factors in the longevity of the growth momentum from low macro penetration, further market share gains, and several unexplored sub-segments in the women’s category. With healthy EPS growth of 36% and RoCE of ~47% in FY14-17E, Page is trading at a justified 25% premium to quality consumer peers
