PL Picks Small Cap Dividend Stock From Luggage Space, Sees Shares Soaring, Buy

Shares of small cap stock operating in Plastics sector, Safari Industries (India) Ltd hit its new 52-week high in trade on Monday. Board of directors announced 75% interim dividend and fixed February 17 as the record date. The stock gave a return of 127% in last 1-year only. If you buy Safari Industries now, you can get likely 27% return. Check details below:

1. Safari Industries (India) Share Performance & Return

The last trading price of the stock is Rs 2014.55 apiece. The stock's 52-week high is Rs 2129.35 apiece and 52-week low is Rs 781.00 apiece, respectively. Despite hitting its new 52-week high, the stock declined over 4% in trade today.

The company has a market capitalisation of Rs 4,776.76 crore.

The stock rallied 127% in last 1-year and 50% in last 6-months. It gave a return of 211% in last 3-years and 263% in last 5-years.

2. Valuation

According to Prabhudas Lilladher, "Safari reported highest ever EBITDA margin amid strong GM performance and accrual of operating leverage benefits arising from having a lean indirect cost structure. PAT increased 399.6% YoY to Rs345mn (PLe Rs254mn) with a margin of 11.4% (PLe 8.5%). We expect sales/PAT CAGR of 16%/22% over FY23E-FY25E and maintain BUY with a TP of Rs2,553 (38x Sep-24EPS; no change in target multiple)."

3. About Safari Industries (India):

Safari Industries was started as a partnership firm in 1974 to manufacture plastic moulded luggage. Safari Industries (India) Ltd., which was incorporated on 6th July, 1980 took over the undertaking and business of Safari Industries w.e.f. 16th November, 1980.

The company manufactures injection moulded plastic articles and vacuum formed plastic articles at its plants at Bombay and Halol Gujarat.

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.