Safari Industries Q1 Review - Result Beat; Market Share Gains Continues: IDBI Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Safari Industries India Ltd.'s Q1 FY24 result was better than our expectations. Revenues jumped 46% YoY (VIP Industries Ltd. had reported only 8% YoY growth) to Rs 4,263 million on account of strong improvement in tourism activities. Gross margin increased by 240 basis points YoY to 40.8% led by price hike amidst stable input cost. Ebitda jumped 71% YoY (VIP Industries reported 22% YoY growth) to Rs 713 million; Ebitda margin expanded 250 bps YoY to 16.7%. Safari has ventured into premium range under the brand name Urban Jungle- which has received strong initial response (given strong industry tailwinds). We raise our sales estimates for FY24-25 by 6-8% given strong result beat in Q1 FY24. Our FY24/FY25 Ebitda stands revised upwards by 8%/12%. We now value the stock at a price-to-earning ratio of 45 times FY25E (earlier 40 times FY25) earnings per share to derive a target price of Rs 4,089 (earlier Rs 3,223)..Click on the attachment to read the full report:.VIP Industries Q1 Results Review - Weak Sales, Margins; Downgrade To 'Hold': IDBI Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Safari Industries Q1 Review - Result Beat; Market Share Gains Continues: IDBI Capital

Safari has ventured into premium range under the brand name Urban Jungle, which has received strong initial response.

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