Safari Industries
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Safari Industries is navigating a challenging environment marked by rising raw material costs and operational pressures, yet management remains optimistic about long-term growth driven by strategic initiatives. The upcoming launch of the Carlton brand is expected to enhance premiumization and margin expansion, aligning with Vista's forecast of stable margins and moderate revenue growth. Despite short-term margin compression, the company's backward integration capabilities and strategic price adjustments have helped maintain a resilient EBITDA margin. The consumer discretionary sector's improving pricing power and the anticipated stabilization of supply chain costs further support Vista's outlook. However, the company faces headwinds from competitive pressures and cautious consumer sentiment, which could impact market share. Over the next 12-24 months, key opportunities include successful brand launches and production scaling, while watchpoints include input cost volatility and operational challenges at the Jaipur facility
Why We Like This Stock
- The launch of the Carlton brand is expected to drive premiumization and margin expansion
- Backward integration capabilities are helping mitigate raw material cost pressures
- The consumer discretionary sector is experiencing improving pricing power, which could benefit margins
Things To Watch Out For
- Rising input costs and competitive pressures are creating challenges for maintaining profitability
- Operational challenges, including manpower shortages, may hinder production scaling
- Cautious consumer sentiment could impact market share and revenue growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,550 | 1,772 | 2,047 | 2,097 | 2,438 |
| Profit Before Tax (Cr.) | 228 | 183 | 216 | 201 | 246 |
| PBT Margin | 14.7% | 10.3% | 1055.2% | 9.6% | 10.1% |
| Net Profit (Cr.) | 173 | 142 | 168 | 157 | 192 |
| Earnings Per Share | 35.3 | 28.9 | 34.3 | 32.0 | 39.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 2,000 | 20-May-2026 |
| IDBI Capital | ▲ Buy | 1,750 | 13-Aug-2026 |
| Moneycontrol | ▲ Overweight | nan | 10-Jun-2026 |
| Prabhudas Liladhar | ▲ Buy | 1,953 | 05-Aug-2026 |
Company Overview
Show Company Profile
Safari Industries (India) Limited designs, manufactures, and markets luggage, backpacks, and travel accessories in India. The company offers printed, laptop, hard, and soft luggage bags; school, laptop, office, college, anti-theft, tech, expandable storage, formal, adventure, and overnighters backpacks; accessories, such as sling bags, messenger bags, and neck pillows; and duffle bags. It sells its products under the Safari, Safari Select, Genius, Urban Jungle, and Genie brands through website and stores, as well as through e-commerce platforms. Safari Industries (India) Limited was incorporated in 1980 and is based in Mumbai, India.