Safari Industries have made patient investors crorepatis. The stock has risen over 10,000 percent in 10 years! The luggage maker surged from around Rs 5 in 2009 to Rs 552 currently, rallying over 11,600 percent in this time-frame.

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To put it into perspective, a 1 lakh investment in Safari Industries' stock in 2009 would have turned to Rs 1.17 crore in 2019. The stock, with a market capitalisation of over Rs 1,200 crore, has VIP, Skybags, Samsonite and American Tourister as major competitors in the Indian market. VIP has gained over 1,500 percent in the last 10 years.

However, in the last one year, the multi-bagger Safari Industries has given negative returns amid the ongoing slowdown. It has fallen over 25 percent in the last one year and 30 percent in 2019 alone. It hit its 52-week high of Rs 829 on December 21, 2018, and a 52-week low of Rs 481 on August 9, 2019.

In the last 10 years, Safari Industries logged a consistent rise in its financial performance. The net profit of the company has risen nearly 1300 percent in the last 10 years from Rs 1.93 crore in March FY10 to Rs 27 crore in March 2019. Sales also advanced 823 percent to Rs 572.63 crore for fiscal ended March 2019 compared to Rs 62.01 crore for fiscal ended March 2010. Meanwhile, Earnings per share almost doubled to Rs 12.20 for the March 2019 fiscal compared to Rs 6.46 for the fiscal ended March 2010.

Safari Industries is the third-largest branded player in the Indian luggage industry. Post the management change in 2012, Safari has grown its revenue by six times in the last seven years. This has been achieved by foraying in many new categories like backpack, school bags (via the acquisition of Genius and Genie) and improvement in distribution networks.

Its margins have more than doubled from 4.1 percent in FY2014 to 9.1 percent in FY2019, driven by the launch of new product categories and business.

As per Angel Broking, the company is likely to maintain over nine percent margins from FY2018 onwards led by regular price hikes, shift towards the organized player and favorable industry dynamics.

It also expects its revenue to grow by a CAGR of 23 percent in revenue over FY2019-21 on the back of growth in its recently introduced new products.

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