Page Industries (PAGIND) 15585

Result Update Rating matrix Rating : Hold Target : 16700 Target Period : 12 months Potential Upside : 7% What s changed? Target Changed from 12000 to 16700 EPS FY16E Changed from 237.1 to 238.5 EPS FY17E Changed from 302.8 to 312.9 Rating Unchanged Quarterly performance YoY (%) QoQ (%) Revenue 372.0 278.9 33.4 377.4 1.4 EBITDA 69.0 55.9 23.5 72.3 4.5 EBITDA (%) 18.6 20.0 148 bps 19.1 60 bps PAT 47.1 35.1 34.2 44.7 5.4 Key financials Crore FY14 FY15P FY16E FY17E Net Sales 1,173 1,514 2,016 2,607 EBITDA 251 319 424 554 Net Profit 154 196 266 349 EPS ( ) 137.9 175.7 238.5 312.9 Valuation summary FY14 FY15P FY16E FY17E P/E 85.0 88.7 65.3 49.8 Target P/E 121.1 95.0 70.0 53.4 EV to EBITDA 52.7 54.9 41.2 31.6 Price to book 45.2 33.8 31.5 23.3 RONW (%) 53.2 50.7 64.1 62.3 ROCE (%) 52.5 57.8 74.0 73.2 Stock data Particular Amount Market Capitalisation ( Crore) 17,383.3 Debt (FY15) ( Crore) 134.4 Cash (FY15) ( Crore) 4.4 EV ( Crore) 17,513.3 52 week H/L 16995 / 5901 Equity Capital ( Crore) 11.2 Face Value ( ) 10.0 Price performance 1M 3M 6M 12M Page Industries 24.5 42.8 75.3 163.2 Lovable Lingerie 1.5 14.5 22.6 9.6 Rupa & Company 97.7 97.0 96.1 96.7 Research Analysts Bharat Chhoda bharat.chhoda@icicisecurities.com Dhvani Modi dhvani.bavishi@icicisecurities.com Jockey riding the valuations..!!! June 2, 2015 Page Industries (PAGIND) 15585 Revenues sequentially grew by 33% YoY (1% QoQ) to 372 crore (Idirect estimate: 348 crore) with realisation at 127.4 per piece. Growth momentum in the menswear and brassiere segment aided revenue growth. The total production capacity as on stood at 19.4 crore pieces EBITDA for the quarter grew 24% YoY to 69 crore as compared to 55.8 crore in. On margin front, the EBITDA margin de grew by 140 bps YoY to 18.6%. The softness in margin was on account rise in royalty expenses by 70bps YoY to 5.7% of sales, due to inclusion of service tax expense in royalty payment Consequently, on the back of lower tax expense PAT posted a growth of 34% YoY to 47.1 crore against our expectation of 43.5 crore. Sustainable revenue growth; justifies consumption story During FY1015, the revenues grew at a CAGR of 35% YoY, supported by volume growth of 19.5% over the same period. The ramp up in capacity addition held the volume growth, which increased from 2.2 crore pieces in FY07 to 19.4 crore pieces in FY15. We believe, the company will continue its growth trajectory and expect the sales volume to grow at a CAGR of 18.4% YoY to 28 crore units over FY1520E. We expect the total production capacity to touch 47 crore pieces by FY20E. Premiumisation to provide cushion to rising costs; maintaining margins With introduction of premium products Page has managed to successively increase the average realization price at a CAGR of 13% YoY over FY1015. This has cushioned the company from rising input costs, on the back of which, it has maintained it operating margins ~20%. In, the EBITDA margins were impacted by increase in royalty expenses by 70 bps to 5.7%, however the company is confident of maintaining its operating margins around 20% (+/ 100 bps). Huge market potential, low branded penetration to boost growth The Indian innerwear segment valued at $4 billion is expected to grow at 12% CAGR over the next decade. Further, the organised apparel market is expected to grow at a CAGR of 21.3% during 20102020E (faster than the overall apparel industry, which is slated to grow at 10.6%). On the back of shift from a necessity to luxury, Jockey brand has consistently grown above industry average growth rate. Further, we believe the India s per capita spend on innerwear currently at mere 10% of Thailand and China will catch up going ahead. Rising urbanisation and growth in consumer incomes will propel the consumption demand. Brand Jockey to drive performance and valuations Consistency in volumes and revenues growth, coupled with prudent balance sheet management and dividend policy, positions Page as the most favoured player in the textile segment. With estimated volume growth of ~18% CAGR and realization growth of 9% CAGR over FY15 20E, we expect Page to continue its growth momentum. We believe the company s growth story to remain multipronged and thus validate it on a DCF based valuation to arrive at target price of 16700 and recommend HOLD rating for the stock. ICICI Securities Ltd Retail Equity Research

Variance analysis E YoY (%) QoQ (%) Comments Revenue 372.0 384.3 278.9 33.4 377.4 1.4 Revenue growth continues to remain strong with majority of the growth driven by men's innerwear which grew by ~39% YoY Other Income 8.4 4.0 6.4 31.3 5.7 45.8 Employee Expense 65.9 63.4 48.5 35.8 65.2 1.1 Raw Material Expense 173.7 186.4 133.1 30.5 176.0 1.3 SG&A Expenses 63.3 59.6 41.4 53.1 64.0 1.0 Lower yarn prices aided an improvement in raw material to sales ratio, which declined from 47.7% in to 46.7% in The increase in expenses is due to higher royalty paid during the quarter EBITDA 69.0 74.9 55.9 23.5 72.3 4.5 EBITDA Margin (%) 18.6 19.5 20.0 148 bps 19.1 60 bps Depreciation 4.6 4.6 4.0 14.6 4.5 2.4 Interest 4.5 4.0 3.7 22.4 3.9 14.0 Owing to increase in royalty cost, margins declined both QoQ and YoY. PBT 68.3 70.3 54.6 25.1 69.6 1.9 Tax Outgo 21.2 24.0 19.4 8.8 24.9 14.9 PAT 47.1 46.3 35.1 34.2 44.7 5.4 PAT grew strongly on account of revenue growth and lower tax expenses Key Metrics Menswear Volume (Mn pcs) 17.5 18.3 12.6 38.5 17.7 1.6 Contributed 60% to the total volume sales in Womenwear Volume (Mn pcs) 4.4 4.6 3.6 20.2 4.3 0.7 Brasserie Volume (Mn pcs) 1.3 1.3 1.0 34.6 1.2 7.6 Leisurewear Volume (Mn pcs) 5.9 5.8 5.0 18.7 6.3 6.4 Speedo Volume (Mn pcs) 0.2 0.1 0.2 9.1 0.0 370.8 The average realisation improved 8% YoY and was higher than our Average Realisation ( ) 127.4 123.0 124.6 2.2 127.1 0.3 expectation Change in estimates FY15P FY16E FY17E ( Crore) Old New % Change Old New % Change Comments Revenue 1,543.0 2,039.0 2,049.4 0.5 2,591.4 2,645.0 2.1 EBITDA 319.0 417.6 424.4 1.6 537.9 554.5 3.1 FY15 results were above our estimates, hence we marginally revised our estimates upwards for FY16E and FY17E. EBITDA mgn (%) 21.1 20.5 21.1 57 bps 20.8 21.3 51 bps Onthebackofsuccessfulpriceriseabsorbtion we marginally upgrade our EBITDA margin estimates for FY16 and FY17 PAT 196.0 264.5 266.0 0.6 337.8 349.0 3.3 EPS ( ) 175.7 237.1 238.5 0.6 302.8 312.9 3.3 Consequently, we have revised our earnings estimates Assumptions Volume (In Lakh Pieces) Current Earlier FY13 FY14 FY15P FY16E FY17E FY16E FY17E Comments Men's 557.1 612.2 731.4 877.7 1,035.7 866.8 996.8 Menswear segment growth traction is expected to remain strong Women's 140.1 160.7 182.9 210.3 241.9 208.2 239.4 Brassieres 28.3 40.7 52.3 68.0 88.4 68.7 89.3 Brassiers segment growth well on track and expected to gain traction Leisure 142.7 195.1 236.2 295.3 369.1 328.0 410.0 Speedo 3.7 3.9 4.1 6.0 7.5 6.0 7.5 Blended realisation ( per piece) 98.9 115.1 125.4 138.3 149.6 138.0 148.7 Average RM cost per piece ( ) 49.2 59.7 65.5 72.4 79.3 72.1 78.9 ICICI Securities Ltd Retail Equity Research Page 2

Exhibit 1: Volumes to grow at CAGR of ~20% during FY1517E Pcs in crore 20 16 12 Topline growth trajectory 8 4 crore 500 400 300 200 100 304 288 303 279 378 390 377 372 2.4 2.0 1.4 0.9 1.1 1.8 0.5 0.6 1.4 1.6 0.1 0.1 0.2 1.1 0.3 0.4 0.9 0.7 3.4 4.2 4.9 5.6 6.1 7.3 Company Analysis Healthy revenue growth to continue Page s revenues have grown at a CAGR of 35% during FY1015. We expect the growth rate to slow down to 29% during FY1520E owing to a larger base effect. We expect both volumes as well as realisation to aid this growth. Considering that the penetration of branded innerwear is significantly low in India and that Indians spend significantly lower on innerwear compared to their Asian peers, we do not anticipate any roadblocks in the company s growth plans. Continuous capacity addition and entry into newer markets is likely to further aid growth. 3.0 2.1 0.7 8.8 3.7 2.4 0.9 10.4 FY10 FY11 FY12 FY13 FY14 FY15P FY16E FY17E Men Bra Women Sports Exhibit 2: with realisation likely to grow 11% per piece 250 200 150 100 50 168 177 118 62 70 49 58 127 191 192 145 151 80 83 95 235 212 182 191 105 258 205 116 125 72 80 77 81 87 92 FY10 FY11 FY12 FY13 FY14 FY15P FY16E FY17E Men Bra Women Sports 215 Exhibit 3: Men s segment witnesses volume growth of 39% YoY Exhibit 4: while women s segment grew at 20% YoY 25 20 15 10 5 17.6 18.3 19.6 17.7 17.5 15.6 14.7 16.0 15.4 13.9 11.5 12.6 120 100 80 60 40 20 6 5 4 3 2 1 3.9 3.5 3.4 3.2 4.5 4.0 4.0 3.6 5.1 4.5 4.3 4.4 90 80 70 60 50 Volumes (in Mn pcs) Realisation ( ) (RHS) Volumes (in Mn pcs) Realisation ( ) (RHS) Exhibit 5: Brassiere segment grows at 35% YoY, albeit on small base Exhibit 6: and leisure wear segment grows at 19% YoY 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.7 0.7 0.7 0.7 1.0 1.0 1.1 1.0 1.3 1.4 1.2 1.3 260 250 240 230 220 210 200 190 180 7 6 5 4 3 2 1 3.5 3.5 3.6 3.6 4.7 4.7 5.3 5.0 5.6 5.8 6.3 5.9 200 180 160 140 120 Source: Company, ICICIdirect.com, Research Volumes (in Mn pcs) Realisation ( ) (RHS) Volumes (in Mn pcs) Realisation ( ) (RHS) ICICI Securities Ltd Retail Equity Research Page 3

Capacity addition to continue Page has continuously expanded capacities in line with the growing demand for its products. Page s capacity has increased from 2.2 crore pieces in FY07 to 19.4 crore pieces in FY15. We expect the same to go up to 27.9 crore pieces by FY17E. As the company is absent in a highly capital intensive segment, Page has been comfortably able to fund the same through internal accruals. We expect the same to continue, going forward. With the current rate of capacity addition, the company is only able to cater to the Indian markets despite holding licenses for Sri Lanka, Bangladesh, Nepal and UAE as well. In a scenario when Indian demand starts to flatten out, the company can access these markets for growth opportunities. Exhibit 7: Continuous capacity addition aids healthy topline growth 30.0 27.9 25.0 23.3 Pcs in crore 20.0 15.0 10.0 5.0 2.2 3.1 4.5 5.1 8.3 10.9 13.6 16.3 19.4 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15P FY16E FY17E Operating margin to be maintained between ~21% over FY15FY17E The management aims to maintain the operating margin around 2021% approximately. The company does not take aggressive price hikes despite the strong demand and believes in taking price hikes to the tune necessary to maintain its operating margins. Though the operating margin has touched 21.1% (in FY15) owing to the benefits of removal of excise duty, we expect Page to maintain margins at current levels i.e. ~21% over next two years. Exhibit 8: EBITDA margin trend 25 20 21.4 20.0 17.0 17.6 20.9 21.6 18.2 20.0 21.4 21.9 17.4 19.1 18.6 21.1 21.1 21.3 % 15 10 5 0 FY14 FY15P FY16E FY17E EBITDA Margin ICICI Securities Ltd Retail Equity Research Page 4

PAT to grow on the back of healthy topline growth Owing to a healthy topline growth and fairly stable margins, the company has been able to grow PAT consistently. We expect the same to continue, going forward. Page s PAT has increased at a CAGR of 38% during FY10 15. We expect it to report growth of 33% during FY1517E. Exhibit 9: Net profit trend 400 350 349.0 300 266.0 crore 250 200 150 153.8 196.0 100 50 33 31 25 24 43 41 35 35 54 50 45 47 FY14 FY15P FY16E FY17E Dividend payouts to be maintained Over the years, Page has maintained a dividend payout in excess of 40%. Despite the continuous capacity addition, the company has been able to maintain this owing to the strong cash generated in the business. We expect this to continue and also expect the payout to increase to ~50% during FY1517E. Exhibit 10: Dividend payout trend 70% 60% 50% 47% 60% 59% 50% 46% 50% 44% 46% 50% 50% 40% 30% 29% 20% 10% 0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15P FY16E FY17E ICICI Securities Ltd Retail Equity Research Page 5

Valuation We believe changing demographics will continue to work in favour of consumption oriented companies like Page Industries. The company will be a beneficiary of the shift from unbranded to branded products. Apart from local demand, Page has licenses to cater to countries like Nepal, Sri Lanka, Bangladesh and UAE. Currently, Page s exports are negligible and the company will be able to explore export opportunities as and when domestic demand begins to dry up. The stock has also faced some concerns that the company will need to resort to debt in order to be able to maintain its current dividend payout and capex requirements. The company incurs a capex of 3040 crore each year and pays out 5060 crore in the form of dividends. With cash from operations of ~ 100 crore, the company should be able to maintain the payout as well as the capacity addition without needing to raise substantial debt. Most of the debt the company raises is typically towards working capital requirements. Given the unorganised nature of the Indian hosiery market, Page industry with its strong brand recall of Jockey is expected to lead the market shift towards organized and premium innerwear segment. We anticipate the growth to be multipronged (growth in brassier and leisure segment together with women s wear besides the men s innerwear segment) and long drawn as the industry moves towards more organised segment. To capture this growth we shift towards three phase discounted cashflow based valuation. We expect Page industry to maintain its high growth trajectory with revenue growth CAGR of ~29% over FY1520E buoyed by volume growth of ~18% over the same period. Volume growth is expected to be driven by women segment with brassier and women innerwear categories growing at a CAGR of 38% and 21% respectively over the same period followed by men s innerwear segment registering a growth of 25%. In the subsequent phases of transition and stable growth (FY2125 & FY2630 respectively) we expect revenue to grow at CAGR of ~19% and 13% respectively supported by volume growth of 11% & 9% respectively. We expect average realization during the periods to grow at 9%, 6% and 4%. Consequently, based on our DCF valuation we arrive at a target price of 16700 and recommend HOLD rating for the stock. Exhibit 11: DCF valuation Terminal growth (%) PV of high growth period ( )Cr PV of transitional growth period ( Cr) PV of stable growth period ( Cr) PV of terminal growth ( Cr) Total ( Cr) Per share Value ( ) 3 1554.6 3424.5 6670.1 6977.6 18626.8 16700 Exhibit 12: Valuations Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE ( cr) (%) ( ) (%) (x) (x) (%) (%) FY14 1173.1 35.9 137.9 36.7 85.0 52.7 53.2 52.5 FY15P 1514.0 29.1 175.7 27.5 88.7 54.9 50.7 57.8 FY16E 2016.0 33.2 238.5 35.7 65.3 41.2 64.1 74.0 FY17E 2606.6 29.3 312.9 31.2 49.8 31.6 62.3 73.2 ICICI Securities Ltd Retail Equity Research Page 6

Company snapshot 18,000.00 Target Price 16700 16,000.00 14,000.00 12,000.00 10,000.00 8,000.00 6,000.00 4,000.00 2,000.00 0.00 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Source: Bloomberg, Company, ICICIdirect.com Research Key events Date Event Mar08 Continued the capacity expansion from 2.2 crore pieces in FY07 to 3.1 crore pieces in FY08; witnessed topline growth of 42% and PAT growth of 40% YoY Mar09 Further expanded capacity from 3.1 crore pieces (FY08) to 4.5 crore pieces translating to topline growth of 32% and PAT growth of 33% YoY Jul10 Capacity increased 60% YoY from 5.1 crore pieces (FY10) to 8.3 crore pieces (FY11), leading to 45% & 48% topline and PAT growth, respectively Aug11 The company continued the topline and bottomline growth at 30%+ and also increased the dividend payout from ~30% in FY07 to ~50% Mar13 Revenue growth relatively slowed down to 26.3% in FY13, mainly due to lower price hikes taken during the year Jul13 Reported strong ~40% topline and 32% bottomline growth in Mar15 Reported 29% topline and 28% bottomline growth in FY15 Top 10 Shareholders Rank Name Latest Filing Date % O/S Position (m)n Change (m) 1 Genomal (Nari) 31Mar15 17.00 1.9 0.0 2 Genomal (Ramesh) 31Mar15 17.00 1.9 0.0 3 Genomal (Sunder) 31Mar15 17.00 1.9 0.0 4 Nalanda Capital Pte Ltd 31Mar15 9.96 1.1 0.0 5 Cartica Capital, Ltd. 31Mar15 7.67 0.9 0.0 6 IIFL Inc 31Mar15 3.58 0.4 0.0 7 IDFC Asset Management Company Private Limited 31Mar15 3.13 0.4 0.0 8 SBI Funds Management Pvt. Ltd. 31Mar15 1.81 0.2 0.0 9 ABG Capital, Ltd. 31Mar15 1.56 0.2 0.0 10 Matthews International Capital Management, L.L.C. 31Jan15 0.82 0.1 0.0 Source: Reuters, ICICIdirect.com Research Shareholding Pattern (in %) Mar14 Jun14 Sep14 Dec14 Mar15 Promoter 51.8 51.8 51.8 51.8 51.0 FII 32.6 32.6 32.3 31.9 32.3 DII 7.5 6.5 6.4 6.3 6.52 Others 8.1 9.1 9.5 10.0 10.2 Recent Activity Investor name Investor name Investor name Value Shares Investor name Value Shares Fidelity Management & Research (Hong Kong) Limited 5.77m 0.03m HDFC Asset Management Co., Ltd. 47.28m 0.44m ASK Investment Managers Pvt. Ltd. 2.20m 0.02m Genomal (Ramesh) 6.71m 0.03m BNP Paribas Investment Partners Asia Ltd. 1.86m 0.01m Genomal (Sunder) 6.67m 0.03m Wellington Management Company, LLP 1.82m 0.01m Genomal (Nari) 6.66m 0.03m Cartica Capital, Ltd. 1.00m 0.01m ABG Capital, Ltd. 4.82m 0.02m Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 7

Financial summary Profit and loss statement Crore (Yearend March) FY14 FY15P FY16E FY17E Total operating Income 1,187.6 1,543.0 2,049.4 2,645.0 Growth (%) 35.9 29.1 33.2 29.3 Raw Material Expenses 565.9 712.1 958.5 1,275.9 Employee Expenses 188.1 258.5 337.3 431.5 Other Expenses 182.4 253.4 329.2 383.2 Total Operating Expenditure 936.4 1,224.0 1,625.0 2,090.5 EBITDA 251.2 319.0 424.4 554.5 Growth (%) 42.3 27.0 33.0 30.6 Depreciation 13.9 17.6 19.7 24.4 EBIT 237.3 301.4 404.7 530.1 Growth (%) 43.6 27.0 34.3 31.0 Interest 10.4 16.7 16.5 20.5 Other Income 6.6 8.6 11.3 14.6 PBT 233.5 293.3 399.5 524.1 Growth (%) 40.9 25.6 36.2 31.2 Total Tax 79.7 97.3 133.5 175.1 PAT 153.8 196.0 266.0 349.0 Growth (%) 36.7 27.5 35.7 31.2 EPS ( ) 137.9 175.7 238.5 312.9 Cash flow statement Crore (Yearend March) FY14 FY15P FY16E FY17E Profit before Tax 233.5 293.3 399.5 524.1 Add: Depreciation 13.9 17.6 19.7 24.4 (Inc)/dec in Current Assets (166.7) (106.3) (55.3) (222.2) Inc/(dec) in CL and Provisions 61.6 74.0 48.6 74.7 Taxes Paid (75.0) (97.3) (133.5) (175.1) Others 6.7 22.6 22.8 27.6 CF from operating activities 74.0 203.9 301.8 253.5 (Inc)/dec in Investments 1.9 0.1 0.4 0.8 (Inc)/dec in Fixed Assets (47.3) (58.6) (41.3) (55.5) Others 1.3 CF from investing activities (44.1) (58.4) (40.9) (54.7) Issue/(Buy back) of Equity Inc/(dec) in loan funds 4.3 (28.8) (2.2) 32.1 Dividend paid & dividend tax (75.6) (104.4) (155.6) (204.2) Others 40.3 (1.0) (102.4) (20.1) CF from financing activities (31.0) (134.3) (260.2) (192.1) Net Cash flow (1.1) 11.2 0.7 6.7 Opening Cash 4.6 3.5 14.7 15.3 Closing Cash 3.5 14.7 15.3 22.0 Balance sheet Crore (Yearend March) FY14 FY15P FY16E FY17E Liabilities Equity Capital 11.2 11.2 11.2 11.2 Reserve and Surplus 277.8 375.6 403.9 548.8 Total Shareholders funds 289.0 386.8 415.1 559.9 Total Debt 163.2 134.4 132.2 164.3 Deferred Tax Liability 9.5 11.4 14.6 18.8 Other long term liabilities 46.6 55.6 59.5 63.7 Total Liabilities 508.3 588.2 621.4 806.7 Assets Gross Block 234.9 288.3 327.9 384.5 Less: Acc Depreciation 64.8 82.5 102.0 126.4 Net Block 170.1 205.8 225.9 258.1 Capital WIP 3.6 8.8 10.5 9.3 Intangible Assets 2.8 2.8 2.8 2.8 Total Fixed Assets 176.4 217.4 239.1 270.2 Investments Inventory 362.6 443.5 469.5 635.6 Debtors 72.7 88.4 99.4 128.5 Loans and Advances 49.0 60.9 75.7 100.8 Cash 3.5 4.4 15.3 22.1 Total Current Assets 488.3 603.4 659.9 887.0 Sundry Creditors 60.8 82.1 118.2 136.3 Current Liabilities 76.4 102.8 74.6 88.7 Provisions 24.1 50.4 91.1 133.5 Total Current Liabilities 161.3 235.3 283.8 358.6 Net Current Assets 327.0 368.2 376.1 528.5 Other Noncurrent Assets 4.9 2.7 6.2 8.1 Application of Funds 508.3 588.2 621.4 806.7 Key ratios (Yearend March) FY14 FY15P FY16E FY17E Per share data ( ) EPS 137.9 175.7 238.5 312.9 Cash EPS 150.4 191.6 256.2 334.8 BV 259.1 346.8 372.1 502.0 DPS 60.0 80.0 119.2 156.5 Cash Per Share 3.1 4.0 13.7 19.8 Operating Ratios EBITDA Margin (%) 21.4 21.1 21.1 21.3 PBT Margin (%) 19.9 19.4 19.8 20.1 PAT Margin (%) 13.1 12.9 13.2 13.4 Inventory days 93.0 97.2 85.0 89.0 Debtor days 20.3 19.4 18.0 18.0 Creditor days 39.2 42.1 45.0 39.0 Return Ratios (%) RoE 53.2 50.7 64.1 62.3 RoCE 52.5 57.8 74.0 73.2 RoIC 53.3 59.3 77.6 76.5 Valuation Ratios (x) P/E 85.0 88.7 65.3 49.8 EV / EBITDA 52.7 54.9 41.2 31.6 EV / Net Sales 11.3 11.6 8.7 6.7 Market Cap / Sales 11.1 11.5 8.6 6.7 Price to Book Value 45.2 33.8 31.5 23.3 Solvency Ratios Debt/EBITDA 0.6 0.4 0.3 0.3 Debt / Equity 0.6 0.3 0.3 0.3 Current Ratio 3.0 2.6 2.3 2.5 Quick Ratio 0.8 0.7 0.7 0.7. ICICI Securities Ltd Retail Equity Research Page 8

ICICIdirect.com coverage universe (Apparel) CMP M Cap EPS ( ) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) Sector / Company ( ) TP( ) Rating ( Cr) FY15P FY16E FY17E FY15P FY16E FY17E FY15P FY16E FY17E FY15P FY16E FY17E FY15P FY16E FY17E Kewal Kiran Clothing (KEWKIR) 2,098 2,119 Hold 2,754 53.8 66.7 84.8 39.0 31.4 24.7 28.3 23.8 18.7 28.0 33.0 37.0 20.7 25.5 28.5 Page Industries (PAGIND) 15,585 16,700 Hold 14,963 170.6 237.1 302.8 91.4 65.7 51.5 43.2 31.6 24.6 61.0 65.1 64.3 51.7 55.4 54.7 Rupa & Company (RUPACO) 412 Unrated 2,816 8.6 10.7 12.0 48.1 38.7 34.3 20.2 14.8 12.7 19.5 21.0 21.5 16.2 16.9 17.4 Vardhman Textiles (MAHSPI) 639 685 Hold 4,093 64.0 82.4 117.2 10.0 7.8 5.5 5.2 4.3 3.4 9.9 14.2 18.7 13.8 15.3 18.7 * Numbers are FY15P, FY16E & FY17E, respectively ICICI Securities Ltd Retail Equity Research Page 9

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Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forwardlooking statements are not predictions and may be subject to change without notice. ICICI Securities or its associates might have managed or comanaged public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or comanaging public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction. ICICI Securities or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the report in the past twelve months. ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that Bharat Chhoda, MBA and Dhvani Modi, MBA, Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report. It is confirmed that Bharat Chhoda, MBA and Dhvani Modi, MBA, Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. 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