Stocks to buy: Veteran investor Ashish Kacholia’s biggest stock bet is now paying handsomely. The stock has gained 115 percent so far in 2023. While its return has decreased to 1,050 percent from the year 2020. Kacholia entered the accessories maker with 1.71% stake in March 2020 quarter. In recent quarters, he increased his stake in the company to 2.74 percent by mid-2022, to reduce the stake. Yet the Multibagger stock is his largest equity holding, worth around Rs. 200 crores. The name of this stock is Safari Industries.
The brokerage firm raised the target price
Brokerage firm IDBI Capital recently raised its target price on the stock to Rs. 4,089 (previously Rs. 3,223). As per the trendline the average target price of the stock is Rs. 3,884, indicating upside potential for the stock.
How many shares does Kacholia hold?
Kacholia holds 5,43,000 shares or 2.29 percent stake in the company. Earlier this month, Safari commissioned an additional 125,000 units at its factory in Halol, Gujarat. As a result, the production capacity of the wholly owned subsidiary Safari Manufacturing Limited has increased from 2,25,000 units per month to 3,50,000 units per month.
Why experts are bullish
Prabhudas Leeladhar said the increased capacity is likely to reduce gross margins further as it will reduce reliance on outsourcing. Sales/PAT CAGR is expected to be 24%/31% during FY 2023-25 due to continued growth in market share and increasing share of indigenous manufacturing. Prabhudas Liladhar Rs. Maintained ‘Buy’ rating on the stock with a target of 3,728.
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Shares of Safari Industries rose 3.25 percent to Rs. 3,644.55 was reached. In May 2022, its price was around Rs 320. Safari has entered the premium segment under the Urban Jungle brand name. It is on par with VIP Industries and Samsonite’s premium luggage range. IDBI Capital said this could provide an additional boost to its margins over the next 2-3 years.
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