Safari Industries Q2 Results Review - Margins Squeezed By Price Wars: IDBI Capital

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..IDBI Capital Report.Safari Industries India Ltd.’s Q2 FY25 sales grew 24% YoY to Rs 4.5 billion, driven by strong volume growth of 40% YoY. However, realization declined ~16% YoY due to heavy discounting aimed at countering price competition. Consequently, gross margin contracted by 166 bps YoY to 43.8%, due to higher input cost. Ebitda fell by 24.5% YoY to Rs 479 million, with Ebitda margin contracting by 669 bps YoY to 10.5%, primarily due to higher advertising and promotion spend for Urban Jungle (Rs 50 million) and support for ECOM channel (Rs 100 million). Management expect higher A&P spend of Rs100mn to continue in Q3 FY25 and expect H2 FY25 performance to better than H1 FY25 in terms of top-line and margins. PAT fell by 25% YoY to Rs 297 million, aided by lower tax rate. We cut our FY25E EPS estimate by 13% and value the stock at a PER of 50 times FY26E EPS to derive a target price of Rs 2,535. We maintain Hold rating..Click on the attachment to read the full report:.Mold-Tek Packaging Q2 Results Review - Subdued Volume Growth Dented Earnings: IDBI Capital.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 Q2 Results Review - Margins Squeezed By Price Wars: IDBI Capital

The brokerage believe price competition to continue and could dent profitability of luggage players for couple of quarters.

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Safari Industries Q2 Results Review - Margins Squeezed By Price Wars: IDBI Capital

The brokerage believe price competition to continue and could dent profitability of luggage players for couple of quarters.

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