1. At a Glance
Safari Industries just rolled another quarter’s results into the departure lounge — ₹528 crore in sales, ₹50 crore PAT, and a P/E so high (66.5x) it should come with an oxygen mask. While the luggage business is cyclical, Safari seems to be trying to convince the market it’s the Louis Vuitton of trolley bags, not the “buy at station shop” variety.
2. Introduction
Once upon a time, Safari was the luggage brand your dad bought once in 1997 and then used until the zip gave up in 2012. Today, it’s on a growth trip worthy of an influencer’s Insta reel — revenue CAGR at 36% over 3 years, profits doubling faster than your uncle’s Dubai trip stories. But the market price? Let’s just say even Air India business class feels cheap.
3. Business Model (WTF Do They Even Do?)
Safari’s two main product buckets:
- Hard Luggage– Made of polypropylene & polycarbonate, churned out at their Gujarat plant.
- Soft Luggage– Imported fabric bags, often made in low-cost hubs overseas.
The mix lets them keep CAPEX moderate while riding consumer demand spikes (wedding season, holiday rush, NRIs over-packing pickles).
4. Financials Overview
Q1 FY26 vs Q1 FY25 & Q4 FY25
| Metric | Latest Qtr (Q1 FY26) | YoY Qtr (Q1 FY25) | Prev Qtr (Q4 FY25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 528 | 450 | 421 | 17.3% | 25.4% |
| EBITDA (₹ Cr) | 79 | 66 | 61 | 19.7% | 29.5% |
| PAT (₹ Cr) | 50 | 44 | 38 | 13.6% | 31.6% |
| EPS (₹) | 10.33 | 9.11 | 7.69 | 13.4% | 34.3% |
Commentary:Q1 margins at ~15% OPM show
they’re managing costs better than rival VIP Industries (currently in “lost luggage” mode).
5. Valuation (Fair Value Range)
Method 1 – P/E
- Annualised EPS (₹10.33 × 4) = ₹41.32
- Applying P/E range 40–50 → FV = ₹1,653 – ₹2,066
Method 2 – EV/EBITDA
- Annualised EBITDA = ₹79 × 4 = ₹316 cr
- EV/EBITDA range 18–22 → FV = ₹1,575 – ₹1,925 per share
Method 3 – DCF (Simplified)
- Assuming 18% revenue CAGR, 13% OPM, 12% WACC → FV ≈ ₹1,600 – ₹2,050
Fair Value Range (Educational):₹1,575 – ₹2,066Disclaimer: This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Capex in Subsidiary– ₹25 crore infusion, likely to expand manufacturing capacity.
- Management Change– New independent director onboard; potential governance boost.
