- Earlier jockey was into premium range only, now its available at all price points
- Indian brands like Rupa, Euro would cost you 90-100 for an undi whereas you can get a Jockey at 120
- There are five separate distributors for different segments/range
- So, out of the 6 working days in a week, five days you have a different Jockey distributor sitting in your shop and taking order. You order today and its delivered the next morning
- Both distributors and dealers get credit of 15-30 days, however PDCs are given at the time of ordering. 2% discount for cash payment
- Dealers are given 20% margin and mostly sell on MRP, its unlikely you would get discounts anymore
- Very happy with company and the brand, value-for-money products – Good quality stuff with lots of variety
- Company over time has built a strong brand name and there is a huge brand pull
- Few days ago a rickshaw puller came asking for Jackey underwear, this guy couldn’t even pronounce it properly and when I suggested buy a cheaper one like Rupa he replied ‘sahb do ki jagah ek lunga but cheez toh achi ho’ 🙂
- Youth has spending power and most of them prefer only branded wear
- Jockey has top-of-the-mind recall and there is just no brand close to it
- Denizen came 3/4 years back and tried to make a dent, its dead now. Stock still lying with me. Doesn’t sell at all.
- Euro, Rupa are not doing good
- Other than Jockey only Dixy Scot is doing fine because of Salmaan Khan endorsing it
- Last winter I ordered Jockey thermals, however distributor was sold out hence never got stock
- This year ordered in Shraadh itself; 150 pieces are lying in my shop now. Each piece costs 475/-
- In last 10 years, dead stock has been close to zero
- One of my distributors (for a particular range of articles) had a target of 50 lacs for October, he is already very close to it.
I know though I am late; its still a classic Peter Lynch kind of stock pick. I haven’t gone too much into financials yet, FY13 EPS was ~Rs 100 and Kotak Institutional Equities estimates FY14 and FY15 EPS at 137 and 170 respectively which implies a forward PE of 25 times for a business that earns 70% RoCE / 60% RoE on OPM of 20% / NPM of 13%, pays out 50% of profits as dividend, has grown profits at 36% CAGR over past 5 years.
It has a wide range of offerings from undergarments to sports wear which has huge potential even going forward.
It could be worth looking at Page Industries as an addition to one’s long-term portfolio.
PS: If you track Page Industries or you have any inputs to share on Jockey or its products, do leave your comments. Thanks!
Leave a Reply