Luggage firm Safari Industries share has delivered strong returns during the last 10 years. The stock, which stood at Rs 7.2 on December 24, 2009, closed at Rs 625 on BSE on December 24 this year. Stock price for December 26 this year cannot be compared with 2009 due to a string of holidays toward the year-end. Christmas was celebrated on December 25 in 2009 followed by a weekend.
Muharram/Ashura was celebrated across the country on December 28. Rs 1 lakh invested into Safari Industries share on December 24, 2009 would have grown to Rs 86.80 lakh on December 24. During the same period, Sensex gained 138.83 percent to 41, 461 compare to the closing level of 17,360 on December 24 2009.
Safari Industries share price has fallen 15.82% since the beginning of this year and lost 20.19% during the last one year. The stock looks overvalued as it has a price to earnings ratio of 55.63 compared to the industry PE of 39.58. During the last 10 years, Safari Industries share price has risen over 8,580 percent compared to 1,100 percent rise in the share price of market leader VIP Industries.
The firm has VIP, Fast Track, Samsonite and American Tourister as major competitors in Indian market. Safari Industries hit a 52-week high of Rs 820.20 on January 9, 2019 and touched its 52-week low of Rs 481 on August 9, 2019.
During the last 10 years, the firm has logged a consistent rise in its financial performance. Net profit for fiscal ended March 2019 stood at Rs 26.98 crore compared to Rs 1.93 crore for March 2010.
Safari Industries also logged a consistent rise in sales during the last ten fiscals. Sales rose to Rs 572.63 crore for fiscal ended March 2019 compared to Rs 62.01 crore for fiscal ended March 2010.
Earnings per share of the firm rose to Rs 12.20 for the March 2019 fiscal compared to Rs 6.46 for the fiscal ended March 2010.
In terms of return on assets (ROCE) too, the growth has been steady. Return on assets ratio rose to 13.49% for fiscal ended March 2019 compared to 4.89% for the fiscal ended March 2010. Q2 earnings show Net profit in Q2 of current fiscal rose 30% to Rs 8.01 crore compared to Rs 6.16 crore in the corresponding quarter of previous fiscal.
Total income grew 31% to Rs 169.86 crore for the quarter ended September 2019 compared to Rs 129.68 crore in the corresponding quarter of previous fiscal. Safari Industries (India) Limited is engaged in manufacturing and trading of luggage travel goods. The company's product range includes polycarbonate (PC) zippered luggage. It also offers products under various categories, such as laptop bags and backpacks.