Safari Inds. (SAFARI)

FairStock Score: 17/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer