Safari Industries Q1 Results Review - Growth Engine Slows Down; Albeit Temporarily: Prabhudas Lilladher

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. .Prabhudas Lilladher Report.We cut our earning per share estimates by 6%/1% for FY25E/FY26E as we fine tune our gross margi assumptions in light of rising competitive intensity. Safari Industries India Ltd. reported a subdued performance with gross margin of 44.5% (our estimate 47.0%) as pricing strategy had to be re-aligned to protect market share in a weak demand environment that witnessed aggressive discounting by a leading player.While pricing pressure might prevail in near term we believe Safari will be in a better position to counter this challenge once greenfield plant at Jaipur begins operations in Q3 FY25E. Progress at the site is satisfactory and capex of ~Rs 300-350 million has already been incurred in Q1 FY25.Operationalisation of new plant will bring in cost competitiveness by optimizing freight & power cost enabling Safari to compete better at mass end of the curve that is most price sensitive. We maintain our positive stance on the stock and expect sales/profit after tax compound annual growth rate of 21%/24% over FY24-FY26E.Maintain ‘Buy’ with a target price of Rs 2,476 as we increase our target multiple to 45 times (earlier 43 times) to account for growth and earnings optionality arising from new plant in Jaipur..Click on the attachment to read the full report:.Nalco Q1 Results Review - Weakness In The Chemical Business Hits Performance: Motilal Oswal.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.

Safari Industries Q1 Results Review - Growth Engine Slows Down; Albeit Temporarily: Prabhudas Lilladher

Company's top-line growth in single digit for the first time post-Covid amid weak demand environment, says the brokerage.

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Safari Industries Q1 Results Review - Growth Engine Slows Down; Albeit Temporarily: Prabhudas Lilladher

Company's top-line growth in single digit for the first time post-Covid amid weak demand environment, says the brokerage.

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