Shares of this small-cap stock under Mr. Ashish Kacholia’s portfolio jumped up to 2 percent in Friday’s trading session after CRISIL upgraded its long-term ratings on the debt instruments of the company.
With a market capitalization of Rs 9,688.01 crores, the stocks of Safari Industries (India) Limited started their trading session on Friday at Rs 4,044.10 and currently trades at Rs 4,073.40. The company’s scrip witnessed an intra-day high of Rs 4,122.10 indicating a jump of around 2 percent as compared to the previous close of Rs 4,044.60 apiece.
Such stock price movements were observed after the company, in a recent filing with the Bombay Stock Exchange (BSE), intimated that CRISIL upgraded its long-term ratings on the debt instruments worth Rs 150 crores from “CRISIL A” to “CRISIL A+”. In addition, the renowned credit rating agency reaffirmed its short-term ratings at “CRISIL A1”.
Mr. Ashish Kacholia, one of the well-known ace investors based in India, has invested in the stocks of Safari Industries (India) Limited. He took an entry into the company’s stock in March 2020 and, as per September 2023 shareholding data, he holds 5 lakh equity shares equating to a 2.10 percent stake in the company.
During the recent financial quarters, the company’s prime business indicators such as operating revenues and after-tax profits showed a dip in numbers with the former reducing from Rs 426.68 crores during Q1FY23-24 to Rs 370.02 crores during Q2FY23-24, and, the latter, during the same time horizon, slipped from Rs 49.94 crores to Rs 39.76 crores.
Coming onto the profitability ratios of the company, the return on equity (RoE) as well as return on capital employed (RoCE) were reported at healthy numbers during FY22-23 with the former at 34.66 percent and the latter at 4.37 percent. In addition, the debt-to-equity ratio was reported within the desirable range, i.e., at 0.14 times.
Safari Industries (India) Limited is a company that is primarily engaged in the business of manufacturing and marketing luggage and other associated accessories. The company offers hard as well as soft luggage cases, backpacks, etc. Its product portfolio includes laptop bags, suitcases, and duffle bags, among others.
Written by Amit Madnani
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