Safari Industries (India) Ltd Falls to 52-Week Low of Rs 1702

Stock Price Movement and Market Context

On 2 Mar 2026, Safari Industries (India) Ltd opened with a gap down of -4.92% and continued to slide throughout the trading session, hitting an intraday low of Rs 1702, representing an 8.26% drop from the previous close. This marks the lowest price level for the stock in the past 52 weeks, down from its high of Rs 2503.8. The stock has been on a losing streak for four consecutive days, accumulating a decline of -7.96% over this period.

In comparison, the Sensex, despite opening sharply lower by 2,743.46 points, managed a partial recovery and was trading at 79,944.00 points, down 1.65% by the close. The Sensex remains below its 50-day moving average, though the 50DMA is still above the 200DMA, indicating some underlying market resilience. Safari Industries, however, is trading below all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—signalling a broad-based weakness in its price momentum.

Financial Performance and Valuation Metrics

The recent quarterly results have contributed to the subdued sentiment. The company reported a Profit Before Tax (PBT) of Rs 35.64 crores, which is down by 25.4% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) declined by 20.8% to Rs 32.89 crores in the same period. These figures indicate a moderation in profitability relative to recent quarters.

Additionally, the Debtors Turnover Ratio for the half-year stands at a low 4.72 times, suggesting a slower collection cycle compared to historical levels. Despite these factors, Safari Industries maintains a Return on Equity (ROE) of 15.9%, reflecting reasonable management efficiency. However, the stock’s valuation remains elevated with a Price to Book Value ratio of 8.7, which is considered expensive relative to its peers’ historical averages.

Relative Performance and Market Comparison

Over the past year, Safari Industries has delivered a negative return of -18.75%, significantly underperforming the Sensex, which posted a positive return of 9.02% during the same period. The broader BSE500 index also outperformed the stock with returns of 13.87%. This divergence highlights the stock’s relative weakness within the diversified consumer products sector and the broader market.

Despite the stock’s negative price performance, the company’s profits have grown by 13.2% over the last year, resulting in a Price/Earnings to Growth (PEG) ratio of 4.2. This elevated PEG ratio suggests that the stock’s price decline has not fully aligned with its earnings growth, contributing to valuation concerns.

Balance Sheet Strength and Operational Metrics

Safari Industries demonstrates a strong ability to service its debt, with a low Debt to EBITDA ratio of 0.59 times. This indicates a manageable debt burden relative to earnings before interest, taxes, depreciation, and amortisation. The company’s net sales have grown at an annual rate of 42.50%, while operating profit has expanded by 55.84%, reflecting healthy long-term growth trends.

Management efficiency remains robust, as evidenced by a high ROE of 18.46%. Institutional investors hold a significant stake of 38.89%, which may reflect confidence in the company’s fundamentals despite recent price weakness.

Mojo Score and Rating Update

MarketsMOJO assigns Safari Industries a Mojo Score of 37.0, categorising it with a Sell grade as of 19 Jan 2026, a downgrade from its previous Hold rating. The market capitalisation grade stands at 3, reflecting the company’s mid-tier size within its sector. The stock’s day change on 2 Mar 2026 was -7.13%, underperforming its sector by 5.98% on the day.

The downgrade in rating aligns with the stock’s recent price weakness and the financial metrics indicating a moderation in profitability and valuation pressures.

Summary of Key Metrics

To summarise, Safari Industries (India) Ltd’s stock has reached a 52-week low of Rs 1702, reflecting a sustained decline over recent sessions. The company’s financial results show a contraction in quarterly profits and a low debtor turnover ratio, while valuation metrics remain elevated. Despite strong sales growth, operating profit expansion, and solid management efficiency, the stock’s performance has lagged the broader market and sector indices over the past year.

Trading below all major moving averages and with a recent downgrade to a Sell rating, the stock’s current price action highlights the challenges it faces in regaining upward momentum.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →