Safari Industries (India) Limited

Consumer Cyclical — Footwear & Accessories · NSE

₹1,319.00+₹6.70 (+0.51%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Safari Industries (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Safari Industries (India) Limited engages in the design, manufacturing, trading, and marketing of luggage, backpacks and travel accessories in India.

IndustryFootwear & Accessories

SectorConsumer Cyclical

Employees1,079

Annual revenue₹2,040 Cr

How does it make money?

Turns over ₹2,040 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 1,079 employees supports ₹1.89 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin14.3%

Net margin8.2%

Revenue / employee₹1.89 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Some evidence

ROCE of 18.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.6%

ROE15.1%

Peer median ROE25.9%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 15.2% and earnings to grow about 27.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.2%

Est. earnings growth+27.4%

Analysts9

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +69% while net margin moved -21% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+69%

Margin effect-21%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 18.6% is comfortably above a typical cost of capital
✗ ROCE has fallen by 15.7 points — returns are eroding
• EBITDA margin of 14.3% is respectable
✗ Net margin of 7.8% is slim
• Revenue has compounded at 19.1% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

39.2x

3Y Median

67.4x

40 monthly readings · mean 64.8x · range 38.4x–84.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 42% below its 3y median of 67.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 43% below the peer median of 69.2x.

vs. its own history

Cheap

67.4x median over 40 months · -42%

vs. sector peers

Cheap

69.2x median of 4 peers · -43%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.2x

P/B

5.80x

EV/EBITDA

22.6x

PEG

3.81

Dividend Yield

0.30%

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 16% over 3 years.
Cash generation is improving
Free cash flow is up 32063% over 3 years.
Valuation below its historical average
At 39.2x the stock trades 42% below its own median of 67.4x.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 17.0% to 14.3% over 3 years.
Return on equity is falling
ROE has dropped from 29.4% to 15.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.3% to 18.6% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 16% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 42% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 43% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹103 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 17.0% to 14.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 29.4% to 15.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 19.1% CAGR
Latest reported year was 11.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹103 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹6,463 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.2x

Fair

Fairly valued against the generic band

P/B Ratio

5.80x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹33.67

Profitable

Profitable on a per-share basis

ROE

15.1%

Strong

Strong capital efficiency

ROCE

18.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

11.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-5.5%

Falling

Profits are shrinking

Dividend Yield

0.30%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹103 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,319

P/E (Forward)

26.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.6%

Average

Average margins

Net Margin

7.8%

Average

Average bottom-line conversion

Current Ratio

3.79

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.39

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1386.9 / 1459.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,208 Cr	₹1,547 Cr	₹1,768 Cr	₹2,040 Cr	+19.1%
EBITDA	₹205 Cr	₹288 Cr	₹249 Cr	₹291 Cr	+12.3%
EBITDA Margin	17.0%	18.6%	14.1%	14.3%	—
PAT (Net Profit)	₹125 Cr	₹176 Cr	₹143 Cr	₹168 Cr	+10.3%
EPS	₹26.21	₹36.73	₹29.16	₹34.24	+9.3%
ROE	29.4%	21.3%	15.0%	15.1%	—
ROCE	34.3%	26.2%	18.6%	18.6%	—
Total Debt	₹139 Cr	₹146 Cr	₹125 Cr	₹117 Cr	-5.8%
Free Cash Flow	₹0 Cr	₹106 Cr	-₹88 Cr	₹103 Cr	+585.1%

🟢 Revenue has grown at 19.1% a year over 3 years.

🟢 EBITDA has grown at 12.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.0% to 14.3% over 3 years (-2.7 pts).

🟢 PAT (Net Profit) has grown at 10.3% a year over 3 years.

🟢 EPS has grown at 9.3% a year over 3 years.

🔴 ROE has fallen from 29.4% to 15.1% over 3 years (-14.3 pts).

🔴 ROCE has fallen from 34.3% to 18.6% over 3 years (-15.7 pts).

🟢 Total Debt has shrunk at 5.8% a year over 3 years.

🟢 Free Cash Flow has grown at 585.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,446 Cr

Total Liabilities

₹332 Cr

Total Debt

₹117 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹173 Cr

Capex

-₹70 Cr

Shareholding (proxy)

Institutional Holding

33.2%

Insider Holding

54.5%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

17 Jul 2026

Analyst Consensus

Recommendations

9 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,028.78

+53.8% vs CMP

Target Range

₹1,750 – ₹2,300

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

Safari Industries (India) Limited (SAFARI.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Safari Industries 52 Week Low Streak: Key Valuation Check

Univest, 09 Oct

Ashish Kacholia-backed Safari Industries up 5% on Q4; should you buy?

Business Standard, 20 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Here's What We Like About Safari Industries (India)'s (NSE:SAFARI) Upcoming Dividend

Simply Wall Street, 13 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Safari Industries schedules investor meeting with HDFC Asset Management

scanx.trade, 07 Oct

Buy Safari Industries India; target of Rs 1953: Prabhudas Lilladher

Moneycontrol.com, 20 May

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟢Financial HealthStrong17.6/20

🟡GrowthModest11.6/20

🟡ProfitabilityModerate8.4/15

🟡ValuationFair7.9/15

🟡RiskModerate6/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓Revenue growth stays above 14% a year19.1% CAGR
✓EBITDA margin holds above 12%14.3%
✓Free cash flow remains positive₹103 Cr
✓Debt / EBITDA stays below 2x0.4x
✓ROCE stays above 16%18.6%