Structural positives at play for Safari, earnings trajectory looks strong
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
– 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
Safari Industries (CMP: Rs 1404, Market Cap: Rs 3145 crore) not only rode the upswing in travel business in the first quarter but also managed its operations well to report a sharp spurt in margin. With the sourcing-mix shifting away from China, a well entrenched position in the value segment, and strong tailwinds favouring the sector, we see brighter days ahead of Safari. As a result, we have revised our earnings estimates. We, therefore, advise investors to look for…
