PAGEIND : Took an initial entry for about 1.25% of the capital

1월 16일

Fundamentals

Cons:

• YoY revenue declined by 7.5%, and PAT experienced a significant 24% YoY decline.
  
• The company faces reduced demand as consumers have already purchased goods during the COVID period, impacting fresh buy orders.
  
• The decision to increase advertising spending comes during a period of reduced demand, potentially straining the company's financials in the short term.
  

Pros:

• Page Industries is implementing an auto-replenishment system, showcasing a commitment to leveraging technology for sales and business model enhancement.
  
• The Odisha plant is set to be activated by Q4FY24, indicating a strategic move towards expanding production capacity.
  
• The company is actively expanding its distribution network, reflecting a forward-looking approach to reach new markets.
  
• Page Industries is venturing into the Women's category, targeting a market with low penetration of organized premium products, presenting a potential avenue for growth.
  
• An increase in advertising spending from 1.9% in Q1FY24 to 2.5% in Q1FY24 demonstrates efforts to maintain brand visibility and market share.
  

Technicals

• Technically, the entry was taken in a key level which showed strength and buying power multiple times.
  
• So decided to take an entry for about 1.25% of the capital. Will consider adding on to the position if the price crashes to the low of the parallel channel.