Scrip Watch

Safari Industries Ltd

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Safari Industries Ltd

Safari Industries Ltd
Other Apparels & Accessories
FV – Rs 10; 52wks H/L – 1744/855.1; TTQ – 14; CMP – Rs 1450 (As On August 21, 2017);                      

            Market Cap – Rs 603 Crs

Consolidated Financials and Valuations for FY17 (Amt in Rs Crs unless specified)

Equity Capital

Net worth
Long Term Debt

EPS (Rs)


Industry P/E


4.15 100 3 360 9.84 241 23.71 25.43 26.6 2.5 61.98 1.23


Consolidated Financials and Valuations for FY16

Equity Capital

Net worth
Long Term Debt

EPS (Rs)


Industry P/E


4.15 91 3 279 7.75 219 18.7 32.2 26.6 2.75 61.98 1.23


Valuation Parameters:

  1. Long Term Debt to Equity – 0.03
  2. ROE % – 10
  3. Market Cap/Sales – 1.7

The company has aggressive growth ambitions and targets to become Rs 1000 Crs company in next three-four years.

During the year, there was a fire at the Halol plant of the Company and Properties & Inventories lying there were damaged. The loss due to the fire was assessed at ` 81 lacs and since the properties and inventories were adequately covered, the insurance company paid a claim of ` 75 lacs towards the said loss.

The Company is becoming multi brand as during the year it acquired brands like Genius & Magnum and also signed a distribution agreement for India with ANTLER, a popular luggage brand in UK.


  • Safari Industries (India) Ltd is engaged in manufacturing and trading of luggage travel goods.
  • The Company’s product range includes polycarbonate (PC) zippered luggage.
  • It also offers products under various categories, such as laptop bags and backpacks.
  • Its Polycarbonate Trolley bags include Traffik Red Colored 4 Wheel Trolley-55 centimeters (cms), Safari Pepper Small Red PC 4 Wheel Trolley and DNA Purple Colored 4 Wheel Trolley-55 cms.
  • Its Duffle bags include Tridex Red Colored Rolling Duffle -55 cms and Revv Brown Colored Rolling Duffle-55 cms.
  • Its Backpacks include Genius Genie Polyester 43 cms Blue Softsided Children’s Backpack, Genius Genie Polyester 48 cms Pink Softsided Children’s Backpack, Safari Emerge Grey Causal Backpack and Genius Young Adults Polyester 48 cms Green Softsided Children’s Backpack.
  • Its Trolley bags include Curv Brown Colored 2 Wheel Trolley-55 cms, Curv Purple Colored 2 Wheel Trolley-55 cms and Tergo Maroon Colored 2 Wheel Trolley-75 cms.
  • The Company operates from 50+ exclusive retail stores.

Market Overview:

  • The overall luggage market in India is roughly Rs 7000-8000 Crs, according to market estimates, with organised players controlling 40 percent.
  • The growth of travel infrastructure such as roads, airports and railway stations have contributed significantly to the development of the travel industry in India. Over the years, both domestic and international air travel have consistently grown in double-digits.
  • Samsonite, VIP and Safari constitute approximately 95 percent of the total organised sector of the luggage industry. Brands like Delsey, Tommy Hilfiger to name a few, account for the rest. VIP is the leader with an almost 50% market share, followed closely by Samsonite (45%). Safari accounts for the rest (5%).


  • Sudhir Jatia – CMD
  •  Vineet Poddar – CFO

Major Non – Promoter Holdings:

Non – Promoters No.of shares held % of shares held
Tano India Private Equity Fund II 830000 20
Central Park Securities Holding Private 83585 2.01



Consolidated Financial Trends (In Rs. Crs) :

Particulars FY17 FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 4.15 4.15 4 3 3 3 3
Networth 100 91 74 12 12 13 14
Total Debt 42 58 33 51 22 17 13
Net Sales 360 279 217 167 94 62 67
Other Income 1 1 6 1 1 0.3 1
PAT 9.84 7.75 4.26 0.12 -0.62 -0.71 2.64
Book Value (Rs) 241 219 185 40 40 43 47
EPS (Rs) 23.71 18.67 10.65 0.40 -2.07 -2.37 8.80


Soft luggage is a major contributor to sales. With the right product offering, the company is trying to cater to the change in consumer preferences towards the convenience of light and wheeled travel products and away from heavier products without wheels.

Due to intense competition, only some increases were passed on to customer through price increases which partially but not fully offset these increased costs. Prices of polymer, aluminum and polycarbonate, the basic raw material for hard luggage, remained under control due to softening of crude prices. 

Peer Comparison:

  1. VIP Industries Ltd
  • VIP Industries, manufactures a range of hard-sided and soft-sided luggage including trolleys, suitcases, duffels and overnight travel solutions, executive cases, backpacks and school bags.
  • Key brands are VIP, Skybags, Alfa, Aristocrat, Carlton, and Caprese.
  • VIP is now the second largest player in the world and largest in Asia.
  • The company derives ~45 percent of its sales from the VIP brand, 27 percent plus from Skybags brand, 20 percent from Aristocrat and Alfa combined, and ~8 percent combined from premium Carlton and Caprese brands.
  1. Safari Industries Ltd
  • Safari has become a serious challenger in the past few years especially in the value segment with its aggressive growth strategy.
  • This company is rapidly spreading itself through mass-premium section and is planning to revamp the entire portfolio for more aggressive expansion.
  • It has acquired Genius Leathercraft and with that the brands like Genius, Magnum, Activa, Orthofit, all came into the Safari basket.
  • It has also forayed into school bags segment.
Particulars (FY17) VIP Industries Ltd Safari Industries Ltd
Face Value (Rs.) 2 10
CMP (Rs.) 213 1450
Market Cap (Rs.Crs) 3010 603
Equity Capital (Rs.Crs) 28.26 4.15
Networth (Rs.Crs) 380 100
Total Debt (Rs.Crs) NIL 42
Net Sales (Rs.Crs) 1281 360
PAT (Rs.Crs) 83.86 9.84
EPS (Rs.) 5.934890304 23.71
P/E 35.88945862 25.43
Book Value (Rs.) 26.89313517 241
P/BV 7.920236842 2.5
ROE % 22.06842105 10
Debt/Equity NIL 0.42


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