Buy Safari Industries (India); target of Rs 3728: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Safari Industries (India) has recommended buy rating on the stock with a target price of Rs 3728 in its research report dated August 10, 2023.

Broker Research

August 11, 2023 / 22:17 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Safari Industries (India)

We upgrade our EPS estimates by 9%/14% for FY24E/FY25E respectively amid healthy beat in 1QFY24 (sales/PAT beat of 25%/34% respectively). Safari reported yet another quarter of stupendous performance with Gross/EBITDA margin of 45.1%/18.5% respectively given rising benefits of indigenous manufacturing and stable RM prices. Additional capacity of 125,000 units per month has come on stream from 01st August 2023 which is likely to further cushion GM as it would reduce reliance on outsourcing.

Outlook

We maintain our positive stance on Safari as consistent gain in market share and rising share of indigenous manufacturing is likely to result in sales/PAT CAGR of 24%/31% over FY23-FY25E. Maintain BUY with a TP of Rs3,728 valuing the stock at 41x FY25E EPS (earlier 40x).

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