Safari Inds. (SAFARI)
Slow GrowerFairStock Score: 17/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,498.5 |
| Market Cap | ₹7,341.98 Cr |
| P/E Ratio | 44.44 |
| ROCE | 18.67% |
| ROE | 14.53% |
| Dividend Yield | 0.27% |
| Profit Growth | -5.5% |
| Debt/Equity | 0.1 |
| Sales Growth | 11.5% |
| Promoter Holding | 44.7% |
| 52-Week Range | ₹1,363.5 — ₹2,507.1 |
| Sector | Consumer Durables |
| Book Value | ₹227.51 |
Strengths
- Low leverage: Debt/Equity of just 0.11 provides financial stability.
- Reasonable capital efficiency: ROCE of 18.67% and ROE of 14.53% are decent.
- Sales growth of 15.73% shows demand for products remains healthy.
- Piotroski F-Score of 7/9 suggests solid fundamentals across profitability, leverage, and efficiency.
- Promoter holding of 44.70% keeps management aligned with minority shareholders.
Concerns
- Extremely expensive valuation: P/E of 52.44 and P/B of 8.79 leave no room for error.
- Profit growth of only 5.62% lags sales growth severely, indicating margin compression.
- PEG of 4.91 strongly signals overvaluation relative to growth.
- FairStock Score of 18/100 flags high risk; dividend yield of 0.17% offers negligible support.
AI Analysis
At ₹1,497.70, Safari Industries is being priced as if it were a compounding machine, yet the numbers tell a more cautious story. With a market cap of ₹8,805 Cr and a P/E of 52.44, I am paying over 52 times earnings for a business whose profit growth is just 5.62%. That gives a PEG ratio of 4.91 — a clear warning. Sales grew 15.73%, but that has not translated into bottom-line growth, suggesting margin pressure or rising competition. The book value is ₹170.41, so the P/B of 8.79 means I am paying almost nine times net worth for a company earning a moderate 14.53% ROE. It is not a terrible business — the debt-to-equity of 0.11 is sound, ROCE of 18.67% is respectable, and the Piotroski F-score of 7/9 indicates decent financial health. Promoters hold 44.70%, which aligns interests. But none of this justifies the price. The FairStock Score of 18/100 reinforces my unease; this is a risky valuation, not a prudent investment. As Graham said, 'price is what you pay, value is what you get.' Here, I get a modest grower with high expectations embedded in the price. The stock trades at ₹1,497.70, down from a 52-week high of ₹2,507.10, which shows how sentiment can turn. A dividend yield of 0.17% means I am not being paid to wait. I would much rather wait for a meaningful margin of safety before even considering this. Patience is the investor's greatest asset, and this is not the time to act.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer