Ashish Kacholia stock among two picks MOFSL initiates coverage on today
On VIP Industries, MOFSL initiated coverage with a 'Buy' rating and a target price of Rs 530. It also suggested 'Buy' on Safari Industries rating and a DCF based target price of Rs 2,700.
- Sep 12, 2025,
- Updated Sep 12, 2025 12:45 PM IST
MOFSL has initiated coverage on Ashish Kacholia’s portfolio stock Safari Industries India and another luggage maker VIP Industries, highlighting the shift of premium luggage into a lifestyle accessory. The brokerage expects branded players to outperform the broader industry, supported by rising disposable incomes, accelerating urbanisation, and a revival in both domestic and international travel.
In the case of VIP Industries, MOFSL cited a series of sharp underperformances but said industry tailwinds and a change in the top management to help VIP Industries deliver robust revenue and Ebitda growths of 10 per cent and 73 per cent compounded annually over FY25-FY28, driven by volume growth and sharp improvement in margin profile.
Calling Safari Industries a leading player in the mass-luggage industry that outpaced industry growth with 30 per cent market share, MOFSL said the company clocked a revenue CAGR of 36 per cent over FY22-25.
"With its focus on building Safari Select/Urban Jungle (premium positioning) and enhanced capacity at Jaipur, the company is expected to deliver a revenue/Ebitda/adjusted PAT CAGR of 16 per cent/25 per cent/27 per cent over FY25-FY28E, driven by healthy volume growth and an improving margin profile," MOFSL said.
Kacholia held 9,00,000 shares or 1.84 per cent stake in Safari Industries as of June 30.
On VIP Industries, MOFSL initiated coverage with a 'Buy' rating and a target price of Rs 530. It also suggested 'Buy' on Safari Industries rating and a DCF based target price of Rs 2,700.
MOFSL said Indian luggage industry is projected to reach Rs 26,700 crore by 2028, registering a CAGR of 12 per cent over 2023-28. After contracting sharply to Rs 6,000 crore in 2020 due to the pandemic, the sector rebounded strongly, clocking a 37 per cent CAGR between 2020 and 2023.
"Branded players, holding a 52 per cent market share in CY23, are expected to outpace overall industry growth, propelled by rising disposable incomes, rapid urbanization, and resurgence in both domestic and international travel," MOFSL said.
It believes that the ongoing shift from unbranded to branded products—driven by product innovation, premiumisation, and e-commerce expansion—is set to spur robust volume and value growth in the organized segment. Additionally, industry experts note that luggage is increasingly viewed as a status symbol, further fueled by evolving social trends, MOFSL said.
MOFSL has initiated coverage on Ashish Kacholia’s portfolio stock Safari Industries India and another luggage maker VIP Industries, highlighting the shift of premium luggage into a lifestyle accessory. The brokerage expects branded players to outperform the broader industry, supported by rising disposable incomes, accelerating urbanisation, and a revival in both domestic and international travel.
In the case of VIP Industries, MOFSL cited a series of sharp underperformances but said industry tailwinds and a change in the top management to help VIP Industries deliver robust revenue and Ebitda growths of 10 per cent and 73 per cent compounded annually over FY25-FY28, driven by volume growth and sharp improvement in margin profile.
Calling Safari Industries a leading player in the mass-luggage industry that outpaced industry growth with 30 per cent market share, MOFSL said the company clocked a revenue CAGR of 36 per cent over FY22-25.
"With its focus on building Safari Select/Urban Jungle (premium positioning) and enhanced capacity at Jaipur, the company is expected to deliver a revenue/Ebitda/adjusted PAT CAGR of 16 per cent/25 per cent/27 per cent over FY25-FY28E, driven by healthy volume growth and an improving margin profile," MOFSL said.
Kacholia held 9,00,000 shares or 1.84 per cent stake in Safari Industries as of June 30.
On VIP Industries, MOFSL initiated coverage with a 'Buy' rating and a target price of Rs 530. It also suggested 'Buy' on Safari Industries rating and a DCF based target price of Rs 2,700.
MOFSL said Indian luggage industry is projected to reach Rs 26,700 crore by 2028, registering a CAGR of 12 per cent over 2023-28. After contracting sharply to Rs 6,000 crore in 2020 due to the pandemic, the sector rebounded strongly, clocking a 37 per cent CAGR between 2020 and 2023.
"Branded players, holding a 52 per cent market share in CY23, are expected to outpace overall industry growth, propelled by rising disposable incomes, rapid urbanization, and resurgence in both domestic and international travel," MOFSL said.
It believes that the ongoing shift from unbranded to branded products—driven by product innovation, premiumisation, and e-commerce expansion—is set to spur robust volume and value growth in the organized segment. Additionally, industry experts note that luggage is increasingly viewed as a status symbol, further fueled by evolving social trends, MOFSL said.