Page Industries (PAGEIND)

FairStock Score: 49/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

Strengths

• Exceptional profitability with ROE of 53.23% and ROCE of 59.40%
• Low leverage with Debt/Equity of 0.19 and strong free cash flow of ₹1,215 Cr
• Promoter holding of 42.89% aligns interests with minority shareholders
• Piotroski F-Score of 8/9 indicates robust financial health
• Healthy dividend yield of 2.80% for a high-quality compounder

Concerns

• Extremely expensive valuation at P/E of 46.22 and P/B of 30.09
• Price is 636.92% above the Graham Number, showing no margin of safety
• DCF intrinsic value of ₹14,510 is far below the market price of ₹37,965
• Sales growth of only 5.44% is modest for such a high multiple, with PEG of 6.58

AI Analysis

When I first look at Page Industries, I see a genuinely exceptional franchise. An ROE of 53.23% and ROCE of 59.40% tell me this is not a commodity garment business; this is a branded powerhouse with pricing power and capital discipline. Debt-to-equity of just 0.19 and free cash flow of ₹1,215 Cr give me comfort that the company is financially strong. Promoter holding of 42.89% also aligns interests with minority shareholders. A Piotroski score of 8 out of 9 reinforces the healthy fundamentals. Yet I am a value investor, not a collector of wonderful businesses at any price. At ₹37,965, the market is asking me to pay 46.22 times earnings and 30.09 times book value. That is a rich price for a business growing sales at only 5.44% and profits at 11.25%. The PEG ratio of 6.58 tells me the growth does not justify the multiple. Graham would shake his head at a negative margin of safety of 636.92% against the Graham Number, and even a conservative DCF estimate of ₹14,510 suggests the stock is far above intrinsic value. The dividend yield of 2.80% is nice, but it does not compensate for the valuation risk. This strikes me as a steady, high-quality stalwart—a wonderful business with a durable moat, but one where Mr. Market is paying too much for the certainty. As Buffett would say, it is far better to buy a wonderful company at a fair price, but here the price is not fair. I would keep it on my watchlist and wait for a more sensible margin of safety before putting capital to work.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer