Safari Industries (India) Limited (SAFARI) AI Stock Analysis

• Market Cap: ₹74.63B
• Dividend Yield: 0.22%
• Average Volume (3M): 1.45K
• Price to Earnings (P/E): 80.9
• Beta (1Y): 0.63
• Revenue Growth: 15.87%
• EPS Growth: 2.76%
• Country: IN
• Employees: 999
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 6.70
• Shares Outstanding: 48,993,927
• 10 Day Avg. Volume: 929
• 30 Day Avg. Volume: 1,453
• PEG Ratio: -3.21
• Price to Book (P/B): 9.98
• Price to Sales (P/S): 5.37
• P/FCF Ratio: -107.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,200.00
• Price Target Upside: 1.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 38.13
• Revenue Forecast (FY): ₹20.58B

• Rating: 58 Neutral
• Price Target: ₹1,545.00 ▼(-28.67% Downside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is held back primarily by weak technicals (downtrend with negative MACD) and cash flow pressure (declining operating cash flow and negative free cash flow). These are partially offset by strong revenue growth and solid operating margins, plus a stable, low-leverage balance sheet. Valuation remains a headwind given the high P/E and low dividend yield.

Positive Factors

Revenue Growth & Margins

Safari's consistent revenue growth combined with healthy gross, EBIT and EBITDA margins indicates durable operating strength and pricing/scale advantages in the luggage segment. Over 2–6 months this supports reinvestment, product development and the ability to sustain operating profitability despite net margin variability.

Low Leverage / Strong Equity

A high equity ratio and low leverage give Safari financial flexibility to fund seasonal inventory, marketing or capex without excessive interest burden. This balance sheet strength reduces solvency risk, preserves borrowing capacity, and supports steady execution of multi-channel growth over the medium term.

Diversified Omnichannel Distribution

Safari's omnichannel model—offline retail, wholesale and e-commerce—reduces channel concentration risk and captures structural shifts toward online while preserving reach in physical stores. Diversified distribution supports steadier revenue, broader customer access and durable market penetration over the coming months.

Negative Factors

Weak Cash Flow / Negative FCF

Declining operating cash flow and persistent negative free cash flow limit internal funding for inventory, marketing and new product launches. Over 2–6 months this can force reliance on external financing or working-capital tradeoffs, increasing financial cost and constraining organic growth initiatives.

Declining Net Margin

A falling net profit margin signals rising operating expenses, pricing pressure or adverse product mix that erodes bottom-line conversion. If sustained, this reduces retained earnings, limits reinvestment capacity and heightens sensitivity to cost inflation and competitive discounting over the medium term.

Liquidity Risk from Falling Cash Balances

Material declines in cash and short-term investments shrink liquidity buffers, increasing risk during seasonal peaks or unexpected shocks. Coupled with negative FCF, lower cash balances could compel debt raises or curtailed spending, hampering strategic flexibility and operational stability in the near term.

Safari Industries (India) Limited Business Overview & Revenue Model

Company Description

Safari Industries (India) Limited manufactures and markets luggage and luggage related accessories in India. The company's products include hard and soft luggage bags; laptop, rain cover, and formal backpacks; and overnighters. It sells its products under the Safari, Magnum, Genius, and Genie brands through stores, as well as through online. The company was incorporated in 1980 and is based in Mumbai, India.

How the Company Makes Money

Safari Industries primarily makes money by selling branded travel luggage and accessories to consumers in India. Revenue is generated from (1) sales of luggage products (including hard luggage and soft luggage such as trolley bags/suitcases) and other travel-related bags/accessories, and (2) distribution across multiple channels—supplying products to large-format/department stores and other retailers (offline wholesale/retail), selling via its own and partner e-commerce marketplaces (online), and selling through its distribution network and brand outlets where applicable. Earnings are driven by product volumes, realized selling prices, product mix (e.g., higher-value hard luggage vs. other categories), brand-led pricing power, and the breadth of its retail/e-commerce reach. Specific details on segment-wise revenue splits, named partnerships, or channel contribution percentages are null.

Safari Industries (India) Limited Financial Statement Overview

Summary

Income statement strength (Score 85) is supported by strong revenue growth and healthy gross/EBIT/EBITDA margins, but a declining net margin is a concern. The balance sheet is stable (Score 75) with a high equity ratio and low leverage, though declining cash and short-term investments raises liquidity risk. Cash flow is the key weakness (Score 65) with declining operating cash flow and negative free cash flow, indicating pressure on internally funded growth.

Income Statement

Safari Industries has demonstrated strong revenue growth over the past few years, with a notable increase from 2024 to 2025. The gross profit margin has remained healthy, suggesting efficient cost management. However, the net profit margin has decreased, indicating rising expenses or other financial pressures. EBIT and EBITDA margins are strong, reflecting solid operational performance.

Balance Sheet

The company's balance sheet shows a solid equity position, with a high equity ratio indicating financial stability. The debt-to-equity ratio is relatively low, suggesting manageable leverage. However, there is a significant decrease in cash and short-term investments, which could affect liquidity if not managed carefully.

Cash Flow

The cash flow statement reveals a decline in operating cash flow and negative free cash flow in recent years, which could pressure the company's ability to fund operations and growth internally. The operating cash flow to net income ratio is low, indicating potential cash generation issues. However, the company has managed financing activities to offset some cash flow deficits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	19.25B	17.72B	15.50B	12.12B	7.04B	3.27B
Gross Profit	9.01B	8.09B	7.28B	5.15B	2.43B	1.30B
EBITDA	2.83B	2.25B	2.91B	2.06B	539.27M	-26.27M
Net Income	1.66B	1.43B	1.76B	1.25B	223.68M	-208.97M
Balance Sheet
Total Assets	14.36B	13.19B	11.44B	7.48B	4.68B	3.97B
Cash, Cash Equivalents and Short-Term Investments	2.15B	2.28B	3.67B	866.50M	591.46M	643.01M
Total Debt	1.13B	1.25B	1.46B	1.39B	556.09M	408.48M
Total Liabilities	3.91B	3.66B	3.21B	3.22B	1.67B	1.18B
Stockholders Equity	10.45B	9.53B	8.23B	4.26B	3.01B	2.79B
Cash Flow
Free Cash Flow	223.70M	-881.20M	1.06B	3.41M	-283.65M	1.03B
Operating Cash Flow	616.20M	573.20M	2.17B	506.46M	156.43M	1.11B
Investing Cash Flow	-321.30M	-96.60M	-3.45B	-695.46M	333.00M	-976.05M
Financing Cash Flow	-335.90M	-751.00M	1.64B	196.29M	-140.79M	-103.73M

Safari Industries (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2166.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAFARI, the sentiment is Negative. The current price of 2166.05 is above the 20-day moving average (MA) of 1706.39, above the 50-day MA of 1890.41, and above the 200-day MA of 2114.53, indicating a bearish trend. The MACD of -104.55 indicates Positive momentum. The RSI at 36.48 is Neutral, neither overbought nor oversold. The STOCH value of 38.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SAFARI.

Safari Industries (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KKCL	66 Neutral	₹26.28B	22.08	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MAHSCOOTER	61 Neutral	₹141.69B	987.71	―	1.57%	―	―
SAPPHIRE	61 Neutral	₹51.52B	-431.17	―	―	10.18%	-104.25%
SAFARI	58 Neutral	₹74.63B	80.89	―	0.22%	15.87%	2.76%
ARVINDFASN	56 Neutral	₹52.97B	65.33	―	0.31%	10.72%	-115.52%
VIPIND	54 Neutral	₹47.88B	-25.69	―	―	-12.59%	-328.41%

Safari Industries (India) Limited Corporate Events

Safari Industries Schedules One-on-One Meeting With ICICI Prudential MF

Safari Industries (India) Limited has informed the exchanges that it will hold a one-on-one meeting with ICICI Prudential Mutual Fund on Thursday, 26 February 2026, at 9:00 a.m. IST as part of its ongoing analyst and investor interactions. The company clarified that no unpublished price-sensitive information or presentations will be shared during this interaction, underscoring its commitment to regulatory compliance and transparent communication with capital market stakeholders.

Safari Industries Plans Rs 500 Crore QIP, Extends MD Tenure and Announces CS Exit

Safari Industries (India) Ltd’s board has approved raising up to Rs. 500 crore through a Qualified Institutions Placement of equity shares with a face value of Rs. 2 each, subject to shareholder approval. The planned fundraising is expected to strengthen the company’s capital base and support its growth ambitions in the competitive luggage market.

The board has also recommended the re-appointment of promoter Sudhir Jatia as managing director for a further five-year term from April 18, 2026 to April 17, 2031, subject to shareholder approval, reinforcing continuity in leadership. Separately, company secretary and compliance officer Rameez Shaikh has resigned to pursue other opportunities and will be relieved from his duties at the close of business on April 17, 2026, prompting an impending key governance role transition.

Safari Industries Board Clears Q3 FY26 Unaudited Results

Safari Industries (India) Limited announced that its board of directors has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The results, reviewed on February 10, 2026, will be uploaded to the company’s website and published in newspapers in line with Indian listing regulations, underscoring Safari’s ongoing compliance and financial disclosure to investors and other market participants.

Safari Industries to Raise Rs 500 Crore via QIP, Extends MD Tenure

Safari Industries (India) Ltd’s board has approved raising up to Rs 500 crore via a qualified institutions placement of equity shares with a face value of Rs 2 each, subject to shareholder approval. The capital infusion is expected to strengthen the company’s balance sheet and support future growth plans, potentially enhancing its competitiveness in the domestic luggage market.

The board also recommended a five-year reappointment of Managing Director Sudhir Jatia from April 18, 2026, to April 17, 2031, ensuring continuity of leadership that has guided the business since its acquisition in 2012. Additionally, Company Secretary and Compliance Officer Rameez Shaikh has resigned to pursue external opportunities and will be relieved from his roles effective close of business on April 17, 2026, prompting an impending change in the company’s governance team.

Safari Industries to Raise Up to Rs 500 Crore via QIP, Extends MD Tenure

Safari Industries (India) Ltd’s board has approved raising up to Rs. 500 crore through an equity issuance via a Qualified Institutions Placement, subject to shareholder approval, to support the company’s growth and strengthen its balance sheet. This potential capital infusion could enhance Safari’s financial flexibility for expansion in India’s competitive luggage market and signal confidence in its medium-term growth trajectory.

The board has also recommended the re-appointment of Managing Director Sudhir Jatia for a further five-year term from April 18, 2026 to April 17, 2031, reinforcing leadership continuity as the company pursues its strategy. In addition, the board accepted the resignation of Company Secretary and Compliance Officer Rameez Shaikh, effective April 17, 2026, necessitating a key governance role replacement but not altering the company’s overall strategic direction.

Safari Industries to raise up to Rs 500 crore via QIP, renews MD’s term and announces company secretary’s exit

Safari Industries (India) Limited’s board has approved raising up to Rs 500 crore through a qualified institutions placement of equity shares with a face value of Rs 2 each, subject to shareholder approval, to strengthen its capital base and support future growth. The board also recommended the re-appointment of Sudhir Jatia as managing director for a further five-year term from April 18, 2026, and accepted the resignation of company secretary, compliance officer and nodal officer Rameez Shaikh, who will be relieved from his duties on April 17, 2026.

These decisions signal a focus on continuity in top leadership while creating financial headroom for expansion, which may bolster investor confidence and support Safari’s competitive positioning in the branded luggage market. The planned transition in the key compliance role will require the company to appoint a new company secretary and compliance officer, but the orderly notice period and board’s appreciation for Shaikh’s contribution suggest a managed and expected change in the governance team.

Safari Industries to Raise Up to Rs 500 Crore via QIP, Extends MD Tenure

Safari Industries (India) Limited’s board has approved raising up to Rs 500 crore through a qualified institutions placement of equity shares with a face value of Rs 2 each, subject to shareholder approval. The planned capital raise is expected to strengthen the company’s balance sheet and provide funding flexibility for growth in the competitive luggage market.

The board has also recommended the re-appointment of Managing Director Sudhir Jatia for a further five-year term from April 18, 2026 to April 17, 2031, reinforcing continuity in leadership after he led the company since acquiring it in 2012. In addition, Company Secretary, Compliance Officer and Nodal Officer Rameez Shaikh has resigned to pursue other opportunities and will be relieved effective April 17, 2026, prompting an imminent change in the firm’s governance and compliance oversight roles.

Safari Industries Files SEBI Demat Compliance Certificate for December Quarter

Safari Industries (India) Limited has submitted a compliance certificate to the BSE and NSE confirming adherence to Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. Its registrar and share transfer agent, Adroit Corporate Services, has certified that all securities received for dematerialisation during the quarter were duly processed, listed on the appropriate stock exchanges, and that physical certificates were mutilated, cancelled and replaced in the register of members within the prescribed timelines, underscoring the company’s ongoing conformity with depository and listing norms for shareholders’ holdings.