Safari Industries (India) Ltd
(BSE Code: 523025) (CMP: Rs.741.85) (FV: Rs.2) By Pratit Nayan Patel
We had recommended this stock at Rs.536.65 on 19 February 2018 and once again at Rs.867.8 on 20 August 2018, whereafter it zoomed to Rs.1005! The stock has fallen sharply in line with the recent market crash but its fundamentals remain intact. Therefore, we recommend this stock once again based on its strong H1FY19 numbers.
Company Background: Incorporated in 1980, Mumbai-based Safari Industries (India) Ltd (Safari) manufactures and trades in luggage and luggage accessories. Its products include wheel upright trolleys, duffles and rolling duffles; business cases, laptop satchels and tablet sleeves; casual and formal backpacks and backpack trolleys as well as travel essentials and foldables. It operates through retail stores and also through an e-commerce channel. It manufactures hard luggage mainly made of Poly Propylene (PP) and Poly Carbonate (PC) at its plant in Halol, Gujarat. It mainly imports soft luggage, which are made of various fabrics.
Financials: Safari has an equity capital of just Rs.4.46 crore supported by huge reserves of Rs.168.39 crore. The promoters hold 57.69% of the equity capital, Malabar India Fund holds 8.53%, Malabar Value Fund holds 1.8% and Tano India Pvt Equity Fund 2 holds 12.18%, which leaves 19.8% stake with the investing public.
Performance Review: For FY18, Safari reported 118% higher PAT of Rs.21.21 crore on 17% higher sales of Rs.415.36 crore