BSE:523025

Stock Analysis Report

Safari Industries (India)

Executive Summary

Safari Industries (India) Limited manufactures and markets luggage and luggage related accessories in India.

Rewards

Trading at 31.6% below its fair value

Earnings are forecast to grow 25.11% per year

Earnings grew by 26.3% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Latest financial reports are more than 6 months old

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Safari Industries (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 523025 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

523025

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-6.1%

523025

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 523025 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 523025 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

523025IndustryMarket
7 Day-2.9%1.1%-0.8%
30 Day3.9%3.3%-2.3%
90 Day12.8%9.6%2.1%
1 Year-6.0%-6.1%19.2%18.4%13.1%11.1%
3 Year216.7%215.8%54.9%51.5%22.9%16.2%
5 Year307.3%305.1%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

How volatile is Safari Industries (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Safari Industries (India) undervalued compared to its fair value and its price relative to the market?

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 523025 (₹648.5) is trading below our estimate of fair value (₹948.66)

Significantly Below Fair Value: 523025 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 523025 is poor value based on its PE Ratio (53.1x) compared to the Luxury industry average (11.1x).

PE vs Market: 523025 is poor value based on its PE Ratio (53.1x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: 523025 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 523025 is overvalued based on its PB Ratio (7.2x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Safari Industries (India) forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 523025's forecast earnings growth (25.1% per year) is above the savings rate (6.5%).

Earnings vs Market: 523025's earnings (25.1% per year) are forecast to grow faster than the Indian market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 523025's revenue (19.4% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 523025's revenue (19.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 523025's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Safari Industries (India) performed over the past 5 years?

64.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 523025 has a high level of non-cash earnings.

Growing Profit Margin: 523025's current net profit margins (4.7%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: 523025's earnings have grown significantly by 64.5% per year over the past 5 years.

Accelerating Growth: 523025's earnings growth over the past year (26.3%) is below its 5-year average (64.5% per year).

Earnings vs Industry: 523025 earnings growth over the past year (26.3%) exceeded the Luxury industry 2.5%.


Return on Equity

High ROE: 523025's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Safari Industries (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: 523025's short term assets (₹3.4B) exceed its short term liabilities (₹1.8B).

Long Term Liabilities: 523025's short term assets (₹3.4B) exceed its long term liabilities (₹14.3M).


Debt to Equity History and Analysis

Debt Level: 523025's debt to equity ratio (52%) is considered high.

Reducing Debt: 523025's debt to equity ratio has reduced from 440.1% to 52% over the past 5 years.

Debt Coverage: 523025's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 523025's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet

Inventory Level: 523025 has a high level of physical assets or inventory.

Debt Coverage by Assets: 523025's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is Safari Industries (India)'s current dividend yield, its reliability and sustainability?

0.077%

Current Dividend Yield


Dividend Yield vs Market

company0.08%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 523025's dividend (0.077%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 523025's dividend (0.077%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: 523025 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 523025 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 523025 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 523025's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Sudhir Jatia (50yo)

7.8yrs

Tenure

₹10,563,000

Compensation

Mr. Sudhir M. Jatia has been the Managing Director of Safari Industries India Ltd. since April 18, 2012. Mr. Jatia served as the Managing Director of Aristocrat Luggage Limited. He served as Managing Direc ...


CEO Compensation Analysis

Compensation vs Market: Sudhir's total compensation ($USD147.71K) is below average for companies of similar size in the Indian market ($USD298.20K).

Compensation vs Earnings: Sudhir's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sudhir Jatia
Chairman & MD7.8yrs₹10.56m46.52% 6.8b
Vineet Poddar
Chief Financial Officer3.8yrs₹13.39m0.054% 7.8m
Rameez Shaikh
Company Secretary & Compliance Officer2yrs₹1.53mno data

3.8yrs

Average Tenure

Experienced Management: 523025's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sudhir Jatia
Chairman & MD7.8yrs₹10.56m46.52% 6.8b
Shailesh Mehta
Non-Executive & Independent Director12.8yrs₹890.00kno data
Dalip Sehgal
Non-Executive & Independent Director6.3yrs₹740.00kno data
Vijaya R. Sampath
Non-Executive & Independent Director5.4yrs₹720.00kno data
Piyush Goenka
Non Independent Non Executive Director3yrs₹120.00kno data
Anujj Patodia
Non-Executive Director7.8yrs₹105.00kno data
Punkajj Lath
Non-Executive & Independent Director7.8yrs₹675.00kno data
Rahul Kanodia
Non-Executive & Independent Director3.8yrs₹210.00kno data
Sumeet Nagar
Additional Non Executive & Non Independent Director0yrsno datano data

6.4yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 523025's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 523025 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

Safari Industries (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Safari Industries (India) Limited
  • Ticker: 523025
  • Exchange: BSE
  • Founded: 1980
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹14.589b
  • Shares outstanding: 22.36m
  • Website: https://www.safaribags.com

Number of Employees


Location

  • Safari Industries (India) Limited
  • 302-303, A Wing, The Qube
  • CTS No.1498, A/2
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523025BSE (Mumbai Stock Exchange)INR2ININRNo data
523025BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002
SAFARINSEI (National Stock Exchange of India)YesEquity SharesININRJan 2002

Biography

Safari Industries (India) Limited manufactures and markets luggage and luggage related accessories in India. Its products include school bags, backpacks, rucksacks, laptop bags, uprights/duffles, and polycarbonate bags. It sells its products under the Safari, Magnum, Genius, and Genie brand names. The company offers products through approximately 50 retail stores, as well as online. Safari Industries (India) Limited was incorporated in 1980 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:44
End of Day Share Price2020/02/17 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.