In Outlook Business’ third edition of The Outperformers, these are the companies that have managed to beat the market over a five-year period, creating significant value for their shareholders.
An exclusive licensee of Jockey in India, Page Industries dominates the men and women premium innerwear segment with a market share of 21% and 12% respectively. It has a network of 470 distributors and 50,000 retail outlets in India. Its revenue and PAT have doubled over five years to Rs.28,522 million and Rs.3,939 million in FY19, respectively. Last fiscal, despite subdued consumption due to the generally weaker market and footfalls, Jockey’s revenue grew 11.71% with volumes increasing 5.63%. To meet growing market demand and support aggressive growth plans, Page Industries is working towards doubling its installed capacity from the existing 260 million pieces over the next five years. It expanded its retail presence too by adding 150 stores in FY19, taking the total store count to 620 exclusive brand outlets (EBOs). Going ahead, kids’ wear would be the company’s focus area, for which it has set up a separate team. While the going has been good so far, the company faces risks from continued slowdown in consumer discretionary spends, losing market share to both organised and unorganised segment, and rising cost of raw materials. Factoring risks, its stock currently trades at a premium of 43.8x its FY21 earnings.
Founded in 1946, PI Industries is among the leading players in crop protection industry. It has two main business verticals – agriculture inputs and custom synthesis and contract manufacturing (CSM). Over the years, the company has established a stronghold in these segments, which contribute 39% and 61% to its net sales of Rs.28.40 billion in FY19. Over the past five years, profit has more than doubled from Rs.1.8 billion in FY14 to Rs.4.1 billion in FY19. Whereas sales have also seen a stellar increase from Rs.15.9 billion to Rs.28.4 billion over the same period.
What separates PI from its peers is its focused product strategy. It launches value-added niche