#PAT #MARGIN

In FY24, the PAT margin was 11.7% an increase of 403 bps YoY, owing to rise in other income and operating profits. In 9M FY25, the PAT margin was 11.6% v/s 910.1% in 9M FY24.

#ROCE

In FY24, the ROCE stood at 16.3% on account of rise in PBIT. Capacity utilization in 9M FY25 was: ~70% for agri machinery and ~75% for construction equipment.

COMPANY POTENTIAL

• In FY24, the domestic tractor industry saw a 7.4% decline in sales, falling to 8.8 lakh tractors from 9.6 lakh in FY23. This decrease was primarily due to erratic and inadequate rainfall, which caused delayed crop harvests and reduced sowing, adversely affecting rural cash flows and compounding the impact of a high base from the previous year. Despite the subdued performance in the latter half of FY24, recent trends suggest a shift towards a more positive industry outlook. Exports also experienced a decline, with tractor volumes dropping by 21.4% to 0.98 lakh from 1.25 lakh in FY23. • In 9M FY25, the domestic tractor industry sales volume was 7.4 lakh units v/s 7 lakh units in 9M FY24. In the export market, the volume stood at 71.3k units v/s 71.4k units for 9M FY24. In Q3 FY25, the domestic industry sales volume was 2.7 lakh units as compared to 2.4 lakh units in Q3 FY24; while in exports market it was 22.1k units in Q3 FY25 v/s 21.3k units in Q3 FY24. FY24. In Q3 FY25, the same stood at 22,800 units v/s 19,900 units in Q3 FY24. • For 9M FY25, the construction equipment (served industry) industry sales volume stood at 54,300 units v/s 51,700 units in 9M • The size of India’s construction equipment market is estimated at $7.3 Billion (~₹61,000 cr) in 2024. In FY24, the industry sales for construction equipment was ~71,500 units v/s 55,400 units in FY23 an increase of 29% YoY, of which backhoe loaders were ~51,400 units, ~14,400 units constituted cranes and ~5,800 units were compactors. The major factors driving the boost in India’s construction equipment market include improved road construction infrastructure, and an increasing urbanization rate. With better road transportation infrastructure and a rise in urban population, there is a greater demand for convenience in personal mobility, healthcare, sanitation, and water supply, among others.

COMPANY OUTLOOK

• On 23rd October 2024, EKL entered into a Business Transfer Agreement with Sona BLW Precision Forgings Limited to transfer its Railway Equipment Business Division (RED) as a going concern through a slump sale. The transaction involves a lump sum cash consideration of ₹1,600 cr, subject to the terms outlined in the agreement. The divestment is contingent on customary closing conditions, including obtaining required approvals and permissions. The company expects this divestment to get completed within 1 year. • During Q3 FY25, the Railway Equipment Division (RED) has been classified under discontinued operations, with previous periods reclassified accordingly as per Ind AS 105 – Non-current Assets Held for Sale and Discontinued Operations. • The board has approved the sale and transfer of ~33,000 sq yards of land adjacent to the RED to Sona Comstar for ~₹110 cr. Currently occupied by the company's spare parts division, the site will be vacated and the division will be relocated to a new facility before the transaction is finalized. • Post-September, industry growth has been exceptional in the South, West, and key opportunity markets like Chhattisgarh, Odisha, and Jharkhand. With significant untapped potential in these regions, efforts have been initiated to expand market coverage. New products have been introduced for these markets, and a gradual improvement in market share is expected over the next 3 to 6 months. Regarding Kubota, while it has a strong presence in the South and West, these regions had been on a declining trend for over a year, significantly impacting dealer profitability. • An expression of interest (EOI) was submitted to the UP government for land acquisition, initially expected by January-end but now delayed. The process is ongoing, and further formalities will proceed once the government finalizes the acquisition.

Channel inventory has been reduced, and domestic market share in Q3 FY25 stands at 11.8%. In line with the strategy of offering innovative products, the recently launched Promaxx Series (primarily targeted at the western market, including Gujarat, Maharashtra, and select regions where presence is currently limited, also in Chhattisgarh, Odisha, and parts of Madhya Pradesh) under the Farmtrac brand in the 30-50 HP category delivered strong performance with advanced technology, ensuring superior comfort and versatility for various applications. The network currently includes ~1,540 exclusive dealers. • For FY25, the domestic tractor industry is anticipated to witness growth of ~6%-7%. • In Q3 FY25, non-tractor segment that includes, agri machinery business, engine business, and the service and spare parts business accounted for 21% of agri machinery revenue, compared to 19% in Q3 FY24 and 18% in Q2 FY25. • From January 2025, the CE industry has transitioned to higher emission norms. During Q3 FY25, a range of Stage 5 emissioncompliant products was introduced, along with the unveiling of a new entry-level Hydra crane and the BLX 75 backhoe loader. These additions were made under the E-Kubota brand. Looking ahead, a temporary volume impact is expected in the CE industry due to price escalation following the transition to BS-V. Models shifting from BS-III to BS-V will see a 10%+ cost increase, while those moving from BS-IV to BS-V will experience a 5%-6% rise. Given this steep hike, a significant profitability surge is not anticipated. However, over the year, cost recovery is expected, leading to a flattish to slightly positive profitability growth. FY26 is projected to remain stable rather than see a decline. • Through Kubota channel, the company is mostly exporting to Europe. In FY26, the growth is expected to exceed 20%, supported by a low base this year and improving demand from European markets, leading to stronger export performance. Export margins are generally in line with domestic margins, despite a slightly lower contribution. While realizations are higher in exports, current CASE STUDY exchange rates have balanced the margin difference.

Escorts Kubota Limited 2900-3260
Expected level 4000
Support 2500

Good morning

14 Small and Mid cap companies with PE less than 20 and consistent sales growth

1. Ganesh Housing Corporation Ltd:

🔸P/E: 15.3
🔸ROCE: 45.0 %
🔸ROE: 41.6 %
🔸OPM: 72.2 %
🔸Sales Growth 3 Years: 74%
🔸Profit Growth 3 Years: 85%



2. Dynacons Systems & Solutions Ltd:

🔸P/E: 17.8
🔸ROCE: 44.2 %
🔸ROE: 41.2 %
🔸OPM: 8.11 %
🔸Sales Growth 3 Years: 33%
🔸Profit Growth 3 Years: 80%

3. EMS Ltd:

🔸P/E: 18.9
🔸ROCE: 29.3 %
🔸ROE: 22.9 %
🔸OPM: 27.7 %
🔸Sales Growth 3 Years: 34%
🔸Profit Growth 3 Years: 27%


4. J Kumar Infraprojects Ltd:

🔸P/E: 13.1
🔸ROCE: 18.4 %
🔸ROE: 13.2 %
🔸OPM: 14.5 %
🔸Sales Growth 3 Years: 24%
🔸Profit Growth 3 Years: 73%


5. Pokarna Ltd:

🔸P/E: 16.2
🔸ROCE: 18.3 %
🔸ROE: 15.8 %
🔸OPM: 32.0 %
🔸Sales Growth 3 Years: 33%
🔸Profit Growth 3 Years: 45%


6. Lumax Auto Technologies Ltd:

🔸P/E: 19.8
🔸ROCE: 17.7 %
🔸ROE: 17.9 %
🔸OPM: 12.3 %
🔸Sales Growth 3 Years: 37%
🔸Profit Growth 3 Years: 41%


7. Lumax Industries Ltd:

🔸P/E: 17.6
🔸ROCE: 17.2 %
🔸ROE: 17.6 %
🔸OPM: 7.94 %
🔸Sales Growth 3 Years: 23%
🔸Profit Growth 3 Years: 88%

8. Ashapura Minechem Ltd:

🔸P/E: 14.8
🔸ROCE: 17.2 %
🔸ROE: 24.3 %
🔸OPM: 12.7 %
🔸Sales Growth 3 Years: 32%
🔸Profit Growth 3 Years: 42%

9. Mangalore Chemicals & Fertilizers Ltd:

🔸P/E: 15.6
🔸ROCE: 16.9 %
🔸ROE: 18.2 %
🔸OPM: 9.59 %
🔸Sales Growth 3 Years: 21%
🔸Profit Growth 3 Years: 32%


10. Sigachi Industries Ltd:

🔸P/E: 17.4
🔸ROCE: 16.7 %
🔸ROE: 16.4 %
🔸OPM: 18.9 %
🔸Sales Growth 3 Years: 27%
🔸Profit Growth 3 Years: 24%


11. Capacite Infraprojects Ltd:

🔸P/E: 14.4
🔸ROCE: 16.1 %
🔸ROE: 9.44 %
🔸OPM: 17.7 %
🔸Sales Growth 3 Years: 30%
🔸Profit Growth 3 Years: 330%


12. Five-Star Business Finance Ltd:

🔸P/E: 19.2
🔸ROCE: 15.8 %
🔸ROE: 17.5 %
🔸OPM: 74.4 %
🔸Sales Growth 3 Years: 28%
🔸Profit Growth 3 Years: 33%


13. MAS Financial Services Ltd:

🔸P/E: 15.0
🔸ROCE: 11.7 %
🔸ROE: 15.2 %
🔸OPM: 75.4 %
🔸Sales Growth 3 Years: 27%
🔸Profit Growth 3 Years: 20%


14. Deep Industries Ltd:

🔸P/E: 17.6
🔸ROCE: 10.3 %
🔸ROE: 8.73 %
🔸OPM: 40.2 %
🔸Sales Growth 3 Years: 30%
🔸Profit Growth 3 Years: 26%

Good morning

Page Industries Limited Company Details Report

Page Industries Limited is a leading player in the premium inner-wear and athleisure market. The company is an exclusive licensee for JOCKEY International Inc (USA) for manufacturing, distribution & marketing in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan & UAE. The products include innerwear, athleisure, socks for men & women, thermal, towel, caps & face mask. Additionally, the company has an exclusive license for Speedo International Limited for manufacturing, distribution & marketing in India (based in Nottingham, UK) which is a manufacturer & distributor of swimwear & swimming accessories including water shorts, apparel & footwear. The company has license with Jockey International till 2040. Jockey brand accounts for majority of the revenue. The products are sold through Exclusive Brand Outlets (EBO), Large Format Stores (LFS) and Multi Brand Outlets (MBO), as well as online (own website as well as other partners like Myntra, Amazon, Zivame, etc.). Through MBO, it has 3,956 distributors across 2,713 cities and towns, covering a retail network of 1,10,826 outlets. In the EBO segment, it has 1,453 stores, which includes 36 exclusive women’s stores and 48 exclusive juniors’ stores. The Key Department Store format is driven through partnerships with 15 leading retail chains, resulting in a footprint of 1,216 stores and 1,803 points of sale nationwide. The company has 13 operational EBOs outside India, ten in UAE and one each in Sri Lanka, Qatar and Oman, with another work-in progress store in Nepal. As on 31st Mar 2025, Speedo brand was available in 1,096+ stores and 36 EBS across 150+ cities in India. The company has a production capacity of 28 cr pieces (including outsourcing) and has 15 manufacturing units (14 in Karnataka and 1 in Tamil Nadu).

Revenue Mix

#SALES #GROWTH

In FY25, the net sales was ₹4,935 cr and grew by 8% YoY. It sold 22 cr pieces reflecting a volume growth of ~6% YoY. Innerwear experienced higher growth v/s athleisure, while accessories such as socks, handkerchiefs, towels and caps witnessed modest volume growth. E-commerce segment-including Jockey.in, the mobile app, and leading online aggregators-demonstrated robust growth, outpacing traditional distribution channels. It saw significant momentum in the quick-commerce space, backed by an expanded presence in dark stores and newer entries in this space. E-commerce contributed 10%+ to revenue. Tier 3 & 4 markets outperformed metro cities & tier 1 cities and accounted for ~50% of sales. In FY24, the net sales declined by 2.8% YoY and stood at ₹4,582 cr. The sales volume stood at 20.8 cr units in FY24 and saw de-growth of 5.9% YoY. Men’s innerwear and women’s innerwear exhibited sustained demand momentum. E-commerce segment constituted 7% of revenue mix.

#EBITDA #GROWTH

In FY25, the EBITDA was ₹1,063 cr an increase of 24% YoY. Better product mix and favourable raw material prices led to this increase. In the previous year, elevated cotton prices led to high-cost inventory, whereas this year saw a more favourable cost & inventory scenario. Company made higher spends towards advertisement and promotion and in the coming years as well, the spends are going to be higher (4%-5% of revenue). Premiumization is advancing as consumers increasingly prefer higher-priced offerings within product categories. This trend, backed by rising disposable income and improved product features, is leading to enhanced per-unit realisation. In FY24, EBITDA experienced a slight increase of 1.1% YoY, reaching ₹872 cr. While key expenses and other line item expenses stabilized, the lower sales volume did not translate into corresponding benefits.

#PAT #GROWTH

In FY25, the net profit was ₹729 cr and increased by 28% YoY. This was on account of higher operating profits and rise in other income. In FY24, the PAT de-grew by 0.4% YoY and was reported at ₹569 cr. This decline can be attributed to lower operating profits.

#EBITDA #MARGIN

In FY25, the EBITDA margin was 21.5% and expanded by ~271 bps YoY. Increase in premium products, led to this expansion coupled with favourable cotton prices. E-commerce and D2C channels contribute to higher realization. There have been no price revisions over the past three years, and the company does not anticipate a need for any in the near future. EBITDA margin during FY24 stood at 19%. Expansion in the same can be attributed to stabilization in raw material prices and other expenses. The effects of investments in digital transformation and marketing initiatives were offset by favourable input costs and optimized operational expenses for the year. The advertising spend for the year was ~4% of revenue and it expects to spend in the similar range, going forward as well.

#ROCE

In FY25, ROCE increased due to a higher capital base from increased retained earnings, while the rise in PBIT did not match this trend.

#COMPANY #POTENTIAL

• Indian textile and apparel market size is estimated to be $175 bn in FY24. Domestic market contributes ~79% to the market size while exports have a share of ~ 21%. Within domestic market, apparel accounts for ~74% share followed by technical textiles with a share of ~19%. The market is projected to grow at 9% CAGR from 2024 to reach US$250 bn by 2031. • India has a share of 4.6% of the global trade in textiles and apparel. USA, EU-27 and UK continue to be the major textile and apparel export destinations for India and account for approximately 50% of India’s textiles and apparel exports. • The innerwear market in India, which has witnessed substantial growth over the past decade, has exhibited notable resilience strong desire for comfortable yet stylish innerwear. during times of adversity. Emerging from a valuation of ₹61,091 cr in 2023, the market is on a trajectory to touch ₹75,466 cr by 2025, at a CAGR of 11.2%. • Women's inner and comfort wear dominate market growth, representing 60% of the total market. This segment is reshaping the industry, with mid and premium categories expected to grow the fastest. Projected to sustain a CAGR of 13%, the segment is estimated to reach ₹55,535 cr by 2025. The surge in demand is driven by shifting preferences, higher disposable incomes, and a • Concurrently, the men's inner and comfort wear segment is gaining traction, holding a substantial 30% market share. Projected to achieve a CAGR of 11.5%, this market is expected to reach ₹26,952 cr by 2025. The segment's rapid expansion is fuelled by evolving fashion consciousness and a growing emphasis on comfort. • The kids’ inner & comfort wear segment accounted for 10% of the market in 2023, it is set to grow with a projected CAGR 8.5%, reaching ₹8,819 cr by 2025. segment’s potential is fuelled by changing parental attitudes, placing equal emphasis comfort and style for their children. Brands are beginning to establish their presence in this segment, signalling a shift toward quality conscious consumerism.

The demand for athletic apparel hinges on its comfort, flexibility, and durability, given its use in exercise and sports. In 2021, this segment was valued at $579.47 million and is anticipated to soar to $2,238.13 million by 2029, reflecting an impressive CAGR of 16.2%. • The distribution channels for innerwear and comfort wear reflect modern consumer behavior, encompassing brick-and-mortar stores, online retailers, and direct-to-consumer (D2C) sales. Traditional retail dominated with 80% of the market in 2021, but the online segment, accounting for 8%, is rapidly growing, indicating a significant digital shift. Large Format Stores and Exclusive Brand Outlets continue to adapt to this evolving landscape. • India’s e-commerce sector is poised for exponential growth, with a projected CAGR of 27%, reaching $163 billion by 2026. From a GMV of $49 billion in FY22 to $60 billion in FY23, it is expected to hit $99 billion by 2024 and expand further to $50 billion by 2030. This rapid growth is driven by substantial investments and increasing penetration in smaller cities. • The expansion of e-commerce into tier-2 and tier-3 cities is a significant growth driver. According to a Deloitte India Report, the online retail market size is expected to reach $325 billion by 2030, up from $70 billion in 2022. This expansion is set against the backdrop of India’s progression towards becoming the third-largest consumer market globally.

#COMPANY #OUTLOOK

• The Company has commenced commercial operations on 19th May at its newly established facility in Ramdaspur Village, Cuttack District, Odisha. Spanning a built-up area of 6,50,000 sq. ft., the facility houses a raw material warehouse, a men’s innerwear manufacturing unit, and dedicated sections for the production of socks and elastics. • The management is targeting high single-digit volume growth in FY26, consistent with the momentum observed in Q4 FY25. In the athleisure segment, growth is expected to accelerate as inventory levels stabilize and new initiatives-focused on product enhancements, improved fit, and styling tailored for younger consumers-are introduced during the year.

Page Industries Limited 43000-46300
Expected level 53000
Support 38500

1510 to 1900⚡️💥Long term level hit jackpot😍

EBITDA Margin

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