In a fresh round of target price revisions, global brokerage HSBC has adjusted its outlook on two prominent Indian stocks—Page Industries and Kalyan Jewellers. While Page Industries received a downward revision amid concerns over growth saturation, Kalyan Jewellers saw its target price raised, reflecting optimism around its expansion strategy and market momentum. These moves signal shifting investor sentiment across sectors, with fashion retail facing headwinds and jewelry retail gaining sparkle.
Key Developments at a Glance
- HSBC cuts Page Industries’ target price to ₹41,070 from ₹41,450
- HSBC raises Kalyan Jewellers’ target price to ₹650 from ₹610
- Page Industries stock under pressure due to slowing growth in core segments
- Kalyan Jewellers benefits from strong demand and aggressive retail expansion
Page Industries: Growth Concerns Trigger Downgrade
HSBC’s revised stance on Page Industries stems from a cautious view of its future growth trajectory:
- The brokerage now expects Page’s revenue to grow at a modest 10% CAGR between FY25 and FY28, down from 17% in FY20–FY23
- Market share in men’s innerwear—Page’s core segment—is nearing saturation, with Jockey already commanding over 50% penetration
- The company’s conservative approach in women’s innerwear, with limited styles and inventory, has opened doors for competitors
- Athleisure, once a high-growth category during the pandemic, is now facing stagnation due to lack of product depth and positioning
- HSBC believes Page’s valuation—trading at a PE ratio near 68x—is stretched, leaving little room for error
Despite its strong brand equity and cash-rich balance sheet, Page Industries is grappling with competitive pressures and limited room for expansion in Tier I markets. Rural and semi-urban penetration remains slow, further dampening growth prospects.
Kalyan Jewellers: Bullish Outlook Amid Expansion Drive
In contrast, HSBC’s upward revision for Kalyan Jewellers reflects growing confidence in the company’s
strategic execution and sectoral tailwinds:
- The target price has been raised to ₹650, up from ₹610, indicating a bullish stance
- Kalyan’s aggressive retail expansion, especially in Tier II and Tier III cities, is driving footfall and revenue
- The company has successfully capitalized on festive demand and rising disposable incomes in semi-urban India
- Digital initiatives and omni-channel retailing have strengthened customer engagement and brand visibility
- HSBC sees scope for margin improvement and sustained topline growth over the next few quarters
Kalyan Jewellers’ ability to blend traditional craftsmanship with modern retail formats is paying off, positioning it as a strong contender in India’s evolving jewelry landscape.
Market Reaction and Sectoral Implications
- Page Industries shares have been under pressure, slipping 1% to ₹44,415 in recent sessions
- Kalyan Jewellers stock has shown resilience, with analysts expecting further upside
- The divergent revisions underscore sectoral shifts: fashion retail is facing saturation, while jewelry retail is riding a demand wave
- Investors are recalibrating portfolios, favoring companies with scalable models and diversified market reach
Conclusion
HSBC’s latest target price adjustments offer a snapshot of changing dynamics in India’s consumer landscape. Page Industries, once a growth darling, is now navigating maturity and competition. Meanwhile, Kalyan Jewellers is gaining investor favor with its expansion-led strategy and strong market traction. As the festive season approaches and consumer sentiment evolves, these two stocks will remain closely watched for signs of momentum—or moderation.
Source: Investing.com and Business Upturn
