Shares of Safari Industries (India) Limited closed today at a price of Rs 2,916.15 and have a market capitalization of Rs 6,900 crores. The stock reached its all-time high level of Rs 3065.95 on the 19th of June 2023.
The scrip, as per the BSE data, has given multibagger returns of approximately 90,300 percent during a long-term period of 14 years ranging from Rs 3.25 in June 2009 to the current price levels. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to around Rs 9.04 crores within a period of 14 years.
Safari Industries (India) Limited is a company based in India that is primarily engaged in the process of manufacturing as well as marketing luggage and its accessories. The company’s product portfolio includes backpacks, laptop bags, suitcases, duffle bags, etc.
On a YoY basis, the basic financial indicators such as the operating revenues as well as net profits have been successful in showing an upward movement with the former increasing from Rs 705 crores during FY21-22 to Rs 1,211 crores in FY22-23 and the latter going up from Rs 22 crores to Rs 125 crores keeping the time horizon the same.
In addition to the above, the company has seen a decent improvement as far as the profitability ratios are concerned. The return on equity (ROE) rose from 9.60 percent during FY21-22 to 29.38 percent in FY22-23 and the return on capital employed (ROCE), during the same period, moved from 13.05 percent to 34.35 percent.
The debt-to-equity ratio, though slightly increased, has remained at the desired levels with a change from 0.05 times during FY21-22 to 0.14 times in FY22-23.
At the same time, the company’s capability to pay off the short-term interest obligations has improved via an increase in the interest coverage ratio from 12.84 times during FY21-22 to 25.89 times in FY22-23.
The latest shareholding data available for the March 2023 quarter represents that the promoters hold a 47.23 percent stake, and Foreign Institutional Investors (FIIs) hold a 15.93 percent stake in the company.
Written by Amit Madnani
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