Safari Industries (India) Limited
Safari Industries (India) Limited Fundamental Analysis
Safari Industries (India) Limited (SAFARI.NS) shows moderate financial fundamentals with a PE ratio of 44.40, profit margin of 8.42%, and ROE of 17.47%. The company generates $20.0B in annual revenue with strong year-over-year growth of 14.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SAFARI.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSAFARI.NS demonstrates superior asset utilization.
Valuation Score
WeakSAFARI.NS trades at a premium to fair value.
Growth Score
ModerateSAFARI.NS shows steady but slowing expansion.
Financial Health Score
ExcellentSAFARI.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateSAFARI.NS maintains healthy but balanced margins.
Key Financial Metrics
Is SAFARI.NS Expensive or Cheap?
P/E Ratio
SAFARI.NS trades at 44.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SAFARI.NS's PEG of 43.09 indicates potential overvaluation.
Price to Book
The market values Safari Industries (India) Limited at 7.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.66 times EBITDA. This signals the market has high growth expectations.
How Well Does SAFARI.NS Make Money?
Net Profit Margin
For every $100 in sales, Safari Industries (India) Limited keeps $8.42 as profit after all expenses.
Operating Margin
Core operations generate 16.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.47 in profit for every $100 of shareholder equity.
ROA
Safari Industries (India) Limited generates $11.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Safari Industries (India) Limited generates limited operating cash flow of $616.81M, signaling weaker underlying cash strength.
Free Cash Flow
Safari Industries (India) Limited generates weak or negative free cash flow of $223.92M, restricting financial flexibility.
FCF Per Share
Each share generates $4.57 in free cash annually.
FCF Yield
SAFARI.NS converts 0.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
43.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How SAFARI.NS Stacks Against Its Sector Peers
| Metric | SAFARI.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.40 | 23.72 | Worse (Expensive) |
| ROE | 17.47% | 1091.00% | Weak |
| Net Margin | 8.42% | -629.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 3.11 | 2.64 | Strong Liquidity |
| ROA | 11.69% | 1050.00% | Weak |
SAFARI.NS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Safari Industries (India) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
150.79%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
350.98%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-22.74%
Industry Style: Cyclical, Growth, Discretionary
Declining