VIP, Safari Industries Gets Motilal Oswal's 'Buy' Rating As It Initiates Coverage

VIP and Safari are the leading players in the Indian luggage industry, commanding strong market positions across mass and mid-premium segments. While travel, tourism, and weddings remain consistent demand drivers, the brokerage believe the sector’s structural growth is increasingly fueled by the resurgence of academic activities, rising international student mobility, and accelerating premiumization trends..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We initiate coverage on VIP Industries Ltd. and Safari Industries India Ltd. with a Buy rating.VIP Industries Following a series of sharp underperformances, with industry tailwinds and a change in the top management, we expect VIP to deliver robust revenue/Ebitda at a CAGR of 10%/73% over FY25-FY28E, driven by volume growth and sharp improvement in margin profile. We initiate coverage on VIP with a Buy rating and a DCF based target price of Rs 530 (implied P/E of 47x on Sep’27). .Safari IndustriesA leading player in the mass-luggage industry that outpaced industry growth with ~30% market share (b/w the top players), Safari has reported a revenue CAGR of 36% 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 profit after tax CAGR of 16%/25%/27% over FY25- FY28E, driven by healthy volume growth and an improving margin profile. We initiate coverage on Safari Industries with a Buy rating and a DCF based target price of Rs 2,700 (implied P/E of 50x on Sep’27). .Key risks:weak macro and geopolitical shocks affecting travel and tourism, intense price competition in the mass segment,slower adoption of hard luggage in Tier 2/3 markets,higher imports by unorganized players from China, and rising input costs and increased trade discounting, adversely impacting operating margins. .Click on the attachment to read the full report:.Shringar House Of Mangalsutra IPO Day Two — Check Subscription Status, GMP.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

VIP, Safari Industries Gets Motilal Oswal's 'Buy' Rating As It Initiates Coverage

Given multi-dimensional tailwinds and their established brand equity, Safari and VIP are strategically positioned to expand market share and deliver healthy earnings growth, adds Motilal Oswal

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