Buy Safari Industries (India); target of Rs 4752: Prabhudas Lilladher

About this update from Safari Industries (india) Limited

Prabhudas Lilladher's research report on Safari Industries (India)We retain our FY24/FY25E EPS estimates and upgrade FY26E estimates by 7% as full fledge benefits of upcoming capacity expansion will be evident in next 12-15 months. Safari has outlined a capex plan of Rs2.15bn which will double its HL capacity from ~6.5lac pieces per month to ~13lac pieces per month. The company reported decent performance in a seasonally weak quarter with Gross margin/EBITDA margin of 45.5%/17.2% respectively.OutlookWe maintain our positive stance, 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-FY26E. Maintain ‘BUY’ with a TP of Rs4,752 (earlier Rs4,559) valuing the stock at 45x Sep-25E EPS (no change in target multiple).For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Safari Industries (India) - 04 - 10-2023 - prabhu

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