Synopsis: Safari Industries (India) Limited gained investor attention after Anand Rathi issued a BUY rating with a Rs. 2,000 target, supported by strong demand, margin improvement, and rising market share.
This Small-Cap Stock, engaged in manufacturing, marketing, and selling luggage, backpacks, travel accessories, and premium travel products across domestic and international markets, is in focus after Anand Rathi gave a buy target of Rs. 2,000, which has an upside potential of 31.75 percent.
With a market capitalization of Rs. 7,437.28 crore, the shares of Safari Industries (India) Limited were currently trading at Rs. 1,518 per equity share, down nearly 0.66 percent from its previous day’s close price of Rs. 1,528.10.
Reason Behind the Surge:
Anand Rathi, a prominent brokerage firm, has recommended a “Buy” call on Safari Industries (India) Limited with a target price of Rs. 2,000 per share, indicating an upside potential of 31.75 percent from its current price of Rs. 1,518 per share.
Anand Rathi remains positive on Safari Industries (India) Limited due to strong domestic demand, improving margins, expanding premium product portfolio, and continuous market share gains across the luggage industry. The company continues to strengthen its market position with steady growth in revenue and market share. In Q4FY26, the company reported revenue growth of 12.4 percent YoY to nearly Rs. 4,733 million, while FY26 revenue increased by 15.5 percent with volume growth of around 19 percent.
Despite sharp raw material inflation of nearly 40 percent, the company maintained healthy gross margins of 49.3 percent and delivered EBITDA margins of 13 percent, higher than market expectations. This reflects strong pricing power, operational efficiency, and a better product mix.
The company is also focusing on premiumisation and retail expansion to drive future growth. Premium brands like ‘Safari Select’ and ‘Urban Jungle’ are expected to contribute 6-8 percent of revenue by FY27-end compared to nearly 5 percent currently.
Additionally, the launch of the Carlton brand in Q2FY27 and expansion to nearly 160 stores strengthen its premium portfolio and distribution reach. The Jaipur manufacturing plant is operating at around 80 percent utilisation, providing room for future capacity expansion.
Safari Industries continues to gain market share in the domestic luggage industry, increasing to nearly 30.4 percent from 26.1 percent earlier, outperforming peers amid weaker industry trends. Management expects nearly 15 percent revenue CAGR over FY26–FY28, while EBITDA and PAT are projected to grow at 18.3 percent and 19.8 percent CAGR, respectively.
Products and Brands
Safari Industries (India) Limited’s portfolio includes hard and soft luggage, duffle bags, backpacks, and travel accessories such as sling and messenger bags. Its products are sold under brands like Safari, Safari Select, Genius, Urban Jungle, and Genie. The company distributes through exclusive retail outlets, its e-commerce site, and leading online marketplaces, targeting a wide consumer segment from value to premium travel goods .
Company Overview:
Safari Industries (India) Limited is an Indian luggage and travel accessories manufacturer headquartered in Mumbai, Maharashtra. Established in 1980, it designs, produces, and markets luggage, backpacks, and related travel goods under multiple brands, serving both domestic and international markets.
Recent Quarter Results:
Coming into financial highlights, Safari Industries (India) Limited’s revenue has increased from Rs. 421 crore in Q4 FY25 to Rs. 473 crore in Q4 FY26, which has grown by 12.35 percent. The net profit has decreased by 2.63 percent from Rs. 38 crore in Q4 FY25 to Rs. 37 crore in Q4 FY26. Safari Industries (India) Limited’s revenue and net profit have grown at a CAGR of 19.09 percent and 10.36 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 19.5 percent and 16.2 percent, respectively. Safari Industries (India) Limited has an earnings per share (EPS) of Rs. 34.2, and its debt-to-equity ratio is 0.10x.
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