Safari Industries (India) Ltd. share price target

Safari Industries (SII) delivered in-line revenue performance in 1QFY27. Revenue grew 11.5% to INR5.9b, supported by ~10% YoY volume growth. EBITDA declined 4.9% YoY to INR754m, while PAT also followed a similar trend, declining 5.4% to INR478m.

Safari's Q4FY26 performance was broadly in-line with our expectations with revenue growing 12% YoY to Rs4.7bn, driven by strong volume growth (~15% YoY). However, realizations declined by 3% YoY amid heightened competitive intensity and aggressive pricing across channels. Gross margin expanded by 11bps YoY to 49.3%, aided by operating leverage benefits from Jaipur facility. EBITDA grew by 2% YoY to Rs618mn, but EBITDA margin contracted by 139bps YoY to 13.1%, owing to increased employee costs (22% YoY) including one-time ESOP cost of Rs80mn and other overheads (16% YoY). PAT remained flat YoY at...

We upgrade SII IN to a BUY (earlier HOLD) with a TP of Rs1,953 (40x FY28E EPS; no change in target multiple) as performance scorecard of 4QFY26 indicates margin revival is on the cards. SII IN reported better than expected performance with GM of 49.3% (PLe 45.8%) aided by backward integration benefit arising from captive manufacturing of wheels & trolleys at Jaipur and rationalization of schemes & discounts to channel partners. While we do not rule out near term margin headwinds amid inflation in RM prices, we believe the issue is transitory and once input costs stabilize, benefits of price hike (~4-6% taken in May-26) and captive manufacturing will be...

Safari Industries reported revenue growth of 12.4% y/y to ~Rs4.7bn (in line with our estimate and 1.2% lower than street estimate) in Q4FY26. Revenue grew by ~15.5% in FY26 with volume growth of ~19%.

recent correction in stock price, we would avoid bottom-fishing at CMP and await tangible recovery in margin profile before turning constructive. Retain HOLD on stock with a TP of Rs2,191 (40x FY28E EPS) as we do not rule out downside risk to our margin estimates. over 15 acres and current capacity is 5 lac pieces per month. The plan is to increase Rs200mn. The Jaipur plant is also eligible for a 1.2% turn-over linked incentive for 10 years (accrual has not yet begun), full reimbursement of stamp duty (amount already recovered) and electricity duty exemption for 10 years. Indigenous...

Safari's Q3FY26 profitability was below our expectations. Sales grew 16% YoY to Rs5.1bn, driven by strong volume growth (20% YoY), while realizations declined by 4% YoY due to aggressive price competition. Gross margin expanded by 107bps YoY to 46.5%, aided by operational leverage led gains. EBITDA grew by 10% YoY to Rs329mn, but EBITDA margin contracted by 52bps YoY to 10.9%, owing to increased employee costs, price discounts and higher marketing spends. PAT increased by 6% YoY to Rs329mn, supported by a lower tax rate (21.2% Vs 23.7% YoY). We cut our FY26E/FY27E EPS estimates by 10%/11%,...

Safari Industries’ (SII) 3QFY26 print misses our estimate; revenue grew 15.7% to INR5.1b, supported by ~20% YoY volume growth. EBITDA/PAT grew 10.5%/5.6% YoY.

Safari's Q2FY26 performance was in-line with expectations. Sales grew 17% YoY to Rs5.3bn, driven by strong volume growth (up 17% YoY), while realizations remained flat YoY signaling continued price competition. Gross margin expanded by 322bps YoY to 47.1%, aided by softening in polycarbonate prices and backward integration. EBITDA grew by 55% YoY to Rs740mn, with EBITDA margin expanding by 342bps YoY to 13.9%, supported higher gross margins. PAT increased by 58% YoY to Rs469mn, supported by lower finance cost (down 13% YoY). We expect revenue/EBITDA/PAT to grow at a CAGR of 14%/26%/29% over...

Safari Industries (Safari)’s 2QFY26 print came in above our estimate; revenue grew 16.5% to INR5.3b, supported by ~16% YoY volume growth.

Safari's Q1FY26 performance exceeded our expectations. Sales grew 17% YoY to Rs5.3bn, driven by strong volume growth (up 17% YoY), while realizations remained flat YoY - indicating easing price competition. As a result, gross margin expanded by 128bps YoY to 45.8% but declined 344bps QoQ on higher share of low margin products. EBITDA grew by 20% YoY to Rs793mn, with EBITDA margin expanding by 38bps YoY to 15.0%, supported by higher gross margins despite higher A&P spends (7% vs. 5.5% in Q1FY24). PAT increased by 14% YoY to Rs505mn. We expect revenue/EBITDA/PAT to grow at a CAGR of 14%/26%/29%...

SII IN reported better than expected results with revenue/EBITDA beat of 3.8%/8.3% respectively. After multiple quarters, volume growth was at par with value growth indicating price wars have stabilized. We expect irrational pricing environment to end soon amid change of guard at top-level within peer set. This is expected to bode well for SII IN as price support to e-com channel partners would come down and tangible benefits of margin expansion resulting from improving utilization at Jaipur would be visible. Additional margin kicker...

We cut our EPS estimates by 6%/5% for FY26E/FY27E as we fine tune our topline growth assumptions amid persistent pricing pressure (volume growth of 22% has resulted in value growth of 15%). Safari reported better-thanexpected performance with EBITDA margin of 14.5% (PLe 12.8%) led by improvement in GM amid 1) reduction in RM prices, 2) better product & channel mix, and 3) lower discounts on e-com channel. Progress at the new site in Jaipur...