Safari Industries Ltd, Ashish Kacholia-owned stock, opened its trading session today at Rs 1,981.55 and closed at Rs 2,008. Within a time span of six months, the stock has gained around 22 percent.
Moving ahead with a horizon of a year, the stock has provided Multibagger returns of about 106 percent to its stakeholders ranging from Rs 973 to the current levels. It means that if someone would have invested Rs 1,00,000 into the stock then it would have converted to Rs 2,06,000 in a period of one year.
At the start of this year, the Safari Industries had successfully commenced additional commercial production/manufacturing of luggage at its factory situated in Halol, Gujarat which led the effective production capacity of the Company to increase from 2,50,000 pieces per month to 3,00,000 pieces per month.
Prabhudas Lilladher retained a ‘Buy’ call on Safari Industries with a target price of Rs 2,476 providing an upside of 23 percent as compared to the current price levels.
Safari Industries Ltd is an India-based listed public company incorporated on 8th July 1980. It is primarily engaged in the process of manufacturing and marketing pertaining to luggage and luggage accessories.
The offerings include hard & soft luggage cases, and backpacks. Product range of the company includes Laptop bags, Backpacks, Suitcase, Four and two-wheel trolleys, Duffle bags, and Rolling duffle bags, among others.
Financials of the company represent a contrasting nature with respect to the pattern shown by the basic parameters such as the revenues and net profits. Revenues moved down from Rs 314.88 crores in Q2 to Rs 303.07 crores in Q3. On the other hand, the net profit figures shifted from Rs 25.93 crores in Q2 to 34.47 crores in Q3.
The profitability ratios of the company such as ROE and ROCE observed a transition from negative to positive returns on a YoY basis. ROE moved from negative returns of 8.21 percent in FY20-21 to positive returns of 7.72 percent in FY21-22. ROCE figures shifted from negative returns of 7.75 percent in FY20-21 to positive returns of 11.33 percent in FY21-22.
Having a look at the shareholding pattern, promoters hold 47.23 percent stake in the company. FIIs increased their holdings from 15.14 percent during Q2 to 15.53 percent in Q3.
Written by Amit Madnani
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