This consumer durable company delivered over 197% returns in a year; do you hold it?

An investment of Rs 1 lakh in the shares of this company 1 year ago would have turned to Rs 2.97 lakh today.    

Safari Industries (India) Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 839.45 on 16th May 2022 to Rs 2499.95 on 17th May 2023, an increase of 197% in the one-year holding period.   

Recent performance highlights 

In the recent quarter Q4FY23, on a consolidated basis, the company’s net profit increased by 1488.32% YoY to Rs 38.09 crore. The company’s net sales increased by 56.91% YoY to Rs 302.71 crore from Rs 192.92 crore.  

The company is currently trading at a PE of 46.9X against the industry PE of 49.4X. In FY23, the company delivered an ROE and ROCE of 34.4% and 37.5%, respectively. The company is a constituent of Group B stocks and commands a market capitalization of Rs 5,829.06 crore. 

Company Profile 

Safari Industries (India) was incorporated on July 6, 1980, and took over the undertaking and business of Safari Industries with effect from November 16, 1980.  Fully paid-up equity shares of the company were issued in total consideration for the takeover. It was promoted by Sumatichandra H Mehta and was converted into a public limited company on February 3, 1986. 

Growth Drivers 

The company manufactures injection-molded plastic articles and vacuum-formed plastic articles. The company is well-positioned for future growth. The Indian travel and tourism industry is growing rapidly and Safari Industries is well-positioned to benefit from this growth. The company is also expanding its product range and entering new markets. 

Share price movements   

Today, the share of Safari Industries Ltd opened at Rs 2458.35 and has touched a high and low of Rs 3,567.35 and Rs 2,415, respectively. So far 1,768 shares have been traded on the bourses. 

At the time of writing, the shares of Safari Industries Ltd were trading at Rs 2,494.85, an increase of 1.48% from the previous day’s closing price of Rs 2458.35 on BSE. The stock has a 52-week high and low of Rs 2663 and Rs 836 respectively on BSE.