Safari Industries (India) Ltd: 6.5 Lakh Bags a Month, 71x P/E, and Still Zipping Up Profits
1. At a Glance
Safari Industries, India’s luggage underdog-turned-rockstar, makes hard luggage (54%) and soft luggage (46%). From Halol, Gujarat, it pumps out 6.5 lakh pieces/month, while imports cover the rest. The stock trades at P/E 71x with ₹1,849 Cr revenue and ₹149 Cr PAT, proving Indians are willing to overpay not just for overpriced Samsonite knock-offs, but also for Safari shares. Q1 FY26 clocked ₹528 Cr sales and ₹50.5 Cr PAT, but margins are slipping. Market cap: ₹10,570 Cr, which is basically 6x the luggage market size of your entire mohalla.
2. Introduction
Safari started in 1974 as the “other luggage brand” while VIP and Samsonite hogged the spotlight. For years, it was like that distant cousin who always tagged along but never paid the restaurant bill. Then, suddenly, it started showing up with swag:
New brands (Genie for kids, Urban Jungle for millennials, Genius for school bags).
Hard luggage manufacturing at Halol to cut import costs.
Aggressive e-commerce push on Amazon/Flipkart.
Covid ironically helped — with domestic travel booming post-2021, Safari zipped past luggage boredom into a growth story. But the stock? It trades like Louis Vuitton, not like luggage. A 71x P/E for a 13% OPM business is as inflated as airline baggage fees.
3. Business Model – WTF Do They Even Do?
Hard Luggage (54%): Polypropylene & Polycarbonate shells. Now mostly in-house at Halol.
Soft Luggage (46%): Polyester/nylon bags, still mostly imported.
