Page Industries (PAG) Research Report

Company Overview

Our meeting with the top management of Page Industries (PAG) was encouraging, indicating improving demand trends post October 25, 2025. The company targets to deliver double-digit sales growth and retain a 19-21% EBITDA margin band in the near term.

Key Developments

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The competitive intensity is easing across men's and women's innerwear (IW) categories, presenting an opportunity for PAG to capitalize. The company is focusing on product refreshes across price points, continued distribution expansion, and higher marketing spends. Additionally, PAG is investing in a consumer data platform to unlock significant value, customize its marketing, and increase its share of consumer wallet.

Market Positioning

Our analysis of top IW players suggests that PAG continues to be the undisputed leader in men's innerwear (MIW), while women's innerwear (WIW) has seen improving growth trends. The athleisure segment is expected to see growth pick-up with product refreshes, particularly through the Groove and Move lines, which could drive a strong connection with young consumers and sports professionals.

Outlook

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The stock has corrected approximately 35% from its 52-week high, and the street's estimate of 8% EBITDA CAGR (FY25-28) seems conservative. We retain a REDUCE recommendation as we await early signs of double-digit growth recovery before turning constructive.

Risk Factors

Prolonged disruptions in the Middle East may lead to input inflation (packaging, logistics, and dyes), posing a risk to PAG's operations.