CRISIL has upgraded Safari’s Credit rating to “AA-” and A1+. This is a significant milestone for the company’s credit rating.
Key takeaway from CRISIL’s rating rationale wrt to growth
- The group continues to launch 3-4 stores per month, aiming to cater to premium as well as mass scale segments.
- As per CRISIL “For fiscal 2025, the group is expected to earn revenues of Rs. 1900 crore, 24% higher than 2024 with EBITDA margins improving to 18.5%.”
- “Group has its own manufacturing units for hard luggage which are operating at full capacity utilization.”
- “Group has announced capex of Rs.215 Crores for setting up a greenfield manufacturing unit in Jaipur, Rajasthan. Capex would lead to doubling its hard luggage capacity from ~6.5lac pieces per month to ~13lac pieces per month. The new capacities expected to become operational in H2FY25 and will help group to further penetrate in to North Indian market.”
- “With the capex expected to come online around December 2024, the revenues and margins are expected to see a further improvement from fiscal 2026, while capital structure remains strong.”
Disc: Invested. I am not SEBI registered Advisor/Analyst. My view may be positively biased. I am not suggesting any investment action. The information provided above is for education purpose only.
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