Prabhudas Lilladher Assigns Buy On 2 Midcap Stocks From Luggage Sector, Sees Up To 44% Gains

Prabhudas Lilladher picks two stocks namely Safari Industries (India) Ltd. (SII) and V.I.P. Industries Ltd. (VIP) from the Luggage sector with a Buy rating. The brokerage has assigned attractive target prices of the stocks with a buy rating for high gains of up to 44%. Both stocks are midcap stocks with decent returns over the past 5 years. Check below to know more:

Offers galore but secondary sales under scanner

Prabhudas Lilladher said, "We interacted with dealers/distributors and visited a few stores to understand demand trends in the luggage sector. Our checks revealed 1) VIP is most aggressive in rolling out promotional offers 2) there is a flurry of new launches by all 3 brands and 3) secondary sales have slowed down a bit in May. Industry tilt towards hard luggage (HL) was clearly evident in shelf space display across channels, while Samsonite's turn-around time for rolling out new designs and refilling inventory was better than other two players.,"

It added, "Further, our conversation with floor representatives in modern trade outlets indicate sharp uptick in sales of Safari. Overall, we maintain our estimates and retain BUY on VIP/Safari with a TP of Rs913 (earlier Rs900)/Rs3,202 (earlier Rs2,790) respectively as we roll forward to FY25E."

Stock Coverage

1. Safari Industries (India) Ltd. (SII)

Prabhudas Lilladher has assigned Rs. 3202 apiece target price on the stock with a Buy rating. The stock is likely to give a decent upside of up to 10% from its current level if purchased at the current market price.

On Thursday, the stock of SII ended at Rs. 2931.60 apiece. It recorded 52 week high on 8 June 2023 at Rs. 2994.95 apiece and 52 week low on 17 June 2022 at Rs. 887 apiece, respectively.

The stock has performed well in the past 1 week, jumped 4.04%, while in the past 1 month, it jumped 12.29%. It gave a multibagger return of 54.7% in the past 3 months. In the past 1 year, it gave 223.83% multibagger return. In the past 3 years, it gave 706.05% multibagger return. In 5 years, it gave 359.6% positive return.

2. V.I.P. Industries Ltd. (VIP IN)

The brokerage assigns a Buy on VIP's stock with a target price of Rs 913 apiece. With the given target price, the stock is likely to fetch a robust 44% gain if purchased at the current market price.

On Thursday, the stock of VIP last traded at Rs. 634.50 apiece, up 1.12% from its previous close. It traded its 52 week high on 1 November 2022 at Rs. 765 apiece and 52 week low on 14 June 2022 at Rs. 533.15 apiece, respectively.

It jumped 4.62% in the past 1 week and 12.76% in the past 3 months, respectively. It gave 12.65% positive return in 1 year, 156.47% in 3 years and 41.82% in 5 years, respectively.

Disclaimer - The Midcap stocks mentioned above are 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 consult with certified experts before making any investment decision.