Next fiscal should be a strong one for VIP and Safari
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Revenge travel is in full swing. While airlines and travel agents are gaining altitude, luggage manufacturers are also set to fly high. This is evident from the strong top line performance of the two listed luggage players — Safari (CMP: Rs 831 M Cap: Rs 1,861 crore) and VIP (CMRs 543, M Cap: Rs 7,681 crore). However, a steep rise in input prices and the supply disruption from China as well as Bangladesh are hurting costs. While the supply…
