Safari Industries Q4 Review - Gross Margin Recoups While Demand Remains Strong: Prabhudas Lilladher

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..Prabhudas Lilladher Report.In an inflationary environment, Safari Industries India Ltd. reported a decent performance with gross margin of 38.7% (our estimate of 36.9%) buoyed by price hike taken towards end of Q3 FY22 and favorable product/channel mix. Though top-line declined 5.4% QoQ due to Omicron impact in January/February, overall demand environment remains strong given easing travel restrictions. While we cut our FY23E earnings per share estimates of Safari Industries by 7% as we trim our gross margin assumption by 100 bps amid persistent raw material cost inflation, our FY24E estimates are broadly intact.We expect sales/profit after tax compound annual growth rate of 27%/98% over FY22-FY24E as benefits of distribution network expansion and stock keeping units extension is yet to play out since sales volumes were impacted by Covid in last two years..Click on the attachment to read the full report:.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 Q4 Review - Gross Margin Recoups While Demand Remains Strong: Prabhudas Lilladher

Safari Industries Q4 Review - Gross Margin Recoups While Demand Remains Strong: Prabhudas Lilladher

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