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Safari Industries stock turned Rs 1 lakh into Rs 1.32 crore in 10 years; did you miss the rally?

Safari Industries share price has fallen 26.82% since the beginning of this year and lost 15.04% during the last one year.

twitter-logo BusinessToday.In        Last Updated: October 23, 2019  | 18:00 IST
This luggage firm stock turned Rs 1 lakh into Rs 1.32 crore in 10 years; did you miss the rally?
Safari Industries share which stood at Rs 4.39 on October 22, 2009, closed at Rs 582.50 on BSE yesterday.

Safari Industries share price has delivered over 13,000 percent returns to investors in the last 10 years. An investment of Rs 1 lakh in the stock on October 22, 2009 would have grown to Rs 1.32 crore today. The stock, which stood at Rs 4.39 on October 22, 2009, closed at Rs 582.50 on BSE yesterday. During the last 10 years, Safari Industries share price has risen 13,168 percent compared to 1,557 percent rise in the share price of market leader VIP Industries. VIP Industries share price closed at Rs 28.49 on October 22, 2009 compared to yesterday's close of Rs 472.15 on BSE.

The firm has VIP, FastTrack, Samsonite and American Tourister as major competitors in Indian market. During the same period, Sensex gained 132 percent to 38,963 from the closing of 16,789 on October 22, 2009.

Also read: This stock turned Rs 1 lakh into Rs 3 crore in 10 years; do you own it?

Safari Industries hit a 52-week high of Rs 546 on December 13 last year and fell to its 52-week low of Rs 342 on July 22 this year. Safari Industries share price has fallen 26.82% since the beginning of this year and lost 15.04% during the last one year. The stock looks overvalued as it has a price to earnings ratio of 55.79 compared to the industry PE of 39.58.

Price-to-book value of the firm stood at a healthy 8.09 for fiscal ended March 2019. Price to book value ratio is calculated by dividing a company's stock price by its book value per share.  Book value per share is the difference between assets and liabilities of the firm. If a stock's book value per share is less than one, then it means it trades at less than the value of its assets.

Also read: Dabur India stock turned Rs 1 lakh into Rs 6 lakh in 10 years

Financial performance

During the last 10 years, the firm 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 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 for March 2019 fiscal stood at 7.10% compared to 4.97% for fiscal ended March 2010. Return on capital employed rose to 22.38% for the fiscal ended March 2019 compared to 12.78% for fiscal ended March 2010.

Quarterly show

Net profit in Q1 of current fiscal fell 29% to Rs 8.61 crore compared to Rs 12.16 crore in the corresponding quarter of previous fiscal. However, net profit rose 133.97% from Rs 3.68 crore on a quarter-on-quarter basis. Net sales rose 30.21% to Rs 203.06 crore for the quarter ended June 2019 compared to Rs 155.94 crore in the corresponding quarter of previous fiscal.

However, net profit rose 44.47% from Rs 140.55 crore on a quarter-on-quarter basis. Net profit in Q4 of last fiscal stood at Rs 3.69 crore compared to Rs 7.66 crore in the corresponding quarter of previous fiscal.

Sales rose 17.8% to Rs 140.05 crore for the fiscal ended March 2019 compared to Rs 119.29 crore during the previous fiscal ended March 2018.

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.

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