1. At a Glance
Safe Enterprises isn’t your average furniture maker — it’s the silent architect behind how you browse overpriced jackets, admire shiny electronics, or get lost in a maze-like department store. With a market cap of ₹900 Cr, a ROCE of 96.4%, and an ROE of 77.6%, it’s the kind of capital efficiency that makes even FMCG veterans jealous. Current P/E is 23x, which is modest given those returns — but no dividend means all the profits stay in the showroom.
2. Introduction
Founded in 1976, Safe Enterprises spent decades in the niche business of designing, manufacturing, and installing retail fixtures. If you’ve ever walked into a glitzy store and thought “wow, nice lighting and shelves,” chances are someone like Safe built it — and charged handsomely for it.
In FY25, sales jumped from ₹101 Cr to ₹138 Cr (+37%), net profit surged 70%, and they repaid their bank loan entirely. This is the corporate equivalent of going from “EMI struggler” to “cash buyer” in one year.
The company is now adding robotics to manufacturing lines, leasing more factory space, and expanding warehouses — basically gearing up to grab a bigger chunk of India’s rapidly modernising retail infrastructure spend.
3. Business Model (WTF Do They Even Do?)
Safe Enterprises operates in the B2B retail fit-out segment, delivering:
- Customised shop fittings: Modular systems, furniture, shelving.
- Tech-integrated fixtures: LED-lit units, digital display systems, electrified racks.
- Sector coverage: Fashion, electronics, department stores.
- End-to-end execution: Design → Manufacture → Supply → Install.
Margins are fat because they sell “custom design” (premium pricing) and integrate tech, which converts a simple shelf into a revenue-generating “experience zone” for retailers.
4. Financials Overview
FY25 vs FY24:
- Revenue: ₹138 Cr vs ₹101 Cr (+37%)
- EBITDA: ₹49 Cr vs ₹32 Cr (margin 36%)
- PAT: ₹39 Cr vs ₹23 Cr (+70%)
- EPS: ₹11.42
- ROE: 77.6% | ROCE: 96.4%
- Debt: ₹0 Cr (loan repaid July ’25)
Commentary: Margins are higher than many luxury brands — when your customer is a retailer, and your product helps them sell more, you get to charge a premium without apology.
5. Valuation – Fair Value RANGE
| Method | Basis | Multiple / Assumption | Value per Share |
|---|---|---|---|
| P/E Method | EPS ₹11.42 | 18x – 26x | ₹205 – ₹297 |
| EV/EBITDA | EBITDA ₹49 Cr | 10x – 12x | ₹230 – ₹276 |
| DCF | 15% growth, WACC 12% | High cash returns | ₹210 – ₹290 |
