VIP, Safari Industries - Sanguine Demand Outlook: Anand Rathi Initiates Coverage

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. .Anand Rathi Report.The Indian luggage sector is oligopolistic, especially in branded space. VIP Industries Ltd. had a 43.8% market share in nine months FY23, Safari Industries India Ltd. ~24.1% and Samsonite ~32%, collectively contributing most of the branded Indian luggage. The sector, which in the past was dominated by non-branded luggage has shifted markedly to branded luggage (45% in FY20, 56% now). Hence, we initiate coverage on VIP Industries and Safari Industries on a positive note.Safari Industries has returned 30% year-to-date due to its highest Ebitda margins in Q3 and nine months-FY23 (higher than VIP Industries) and continuous market-share gains, whereas VIP Industries was down 13%. We believe VIP Industries should catch up and can offer better returns (46%) than Safari Industries (25%) since its renewed focus on the mass category, doubling of its international business, further growth from Caprese and self-sufficiency in its own manufacturing would boost its revenue growth and margins. Risks- Recessionary pressure, slowdown in travelling and any external pandemic like event could curb sales of luggage..Click on the attachment to read the full report:.Media, Education, Travel Q3 Results Preview- Demand Momentum In Luggage, Hotels Is Intact: Prabhudas Lilladher.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.

VIP, Safari Industries - Sanguine Demand Outlook: Anand Rathi Initiates Coverage

Macro pressures, consumer-preference shift fuelling branded-segment growth.

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