Buy Safari Industries (India), target price Rs 1100: Axis Securities

Axis Securities has buy call on Safari Industries (India) Ltd. with a target price of Rs 1100. The current market price of Safari Industries (India) is Rs 930.6. Time period given by analyst is one year when Safari Industries (India) Ltd. price can reach defined target.
Safari Industries (India) Ltd., incorporated in the year 1980, is a Small Cap company (having a market cap of Rs 1296.01 Crore) operating in Plastics sector.

Safari Industries (India) Ltd. key Products/Revenue Segments include Luggage Items and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 190.60 Crore, up 56.19 % from last quarter Total Income of Rs 122.03 Crore and up 199.42 % from last year same quarter Total Income of Rs 63.66 Crore. Company reported net profit after tax of Rs 10.62 Crore in latest quarter.


Investment Rationale
The brokerage believes the Indian luggage industry offers immense growth opportunities for a mid-premium/value-focused brand like Safari. It revises FY22/23/24 estimates upwards by factoring in a near-normal business in FY22E and consequently maintain BUY rating with a revised TP of Rs 1100/share (previously Rs 925/share) as it values the stock at 45x PE FY24E.

Promoter/FII Holdings
Promoters held 49.9 per cent stake in the company as of 30-Sep-2021, while FIIs owned 18.61 per cent, DIIs 3.86 per cent.