Ambit Capital prefers India's Safari over V.I.P. on market share gain

Safari Industries (INDIA)

19/07/2023 09:15

** Brokerage Ambit Capital prefers Safari Industries (India)
 SAFA.NS  over V.I.P. Industries  VIPI.NS  on continued market
share gains, better execution 
    ** VIPI stock down 0.65% and SAFA drops 0.7%
    ** Brokerage says Safari is fastest growing luggage player
in India over the last decade, outperforming peers at ~1.8x FY20
    ** VIPI stock is slowest to recover at ~1.2x FY20 levels,
note adds 
    ** SAFA's market share jumped to 23% in CY22 from 5% in
CY12, VIPI's fell to 41% in CY22 from 54% in CY12 - note 
    ** The ratings house positive on Indian luggage sector, says
structural demand drivers intact 
    ** Brokerage lists positive factors like a surge in travel
demand, shift to branded products and faster replacement cycles 
    ** Ambit maintains "buy", TP 800 rupees for VIPI; "buy", TP
3,600 rupees for SAFA
        
    

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))