Prabhudas Lilladher has issued a buy rating on Safari Industries India with a target price of ₹1,953 in its research report dated August 05, 2026. According to the brokerage's analysis, the stock is currently trading at 41x/31x its FY27E/FY28E EPS, with the target price representing a 40x FY28E EPS multiple with no change in the target multiple.
As of August 05, 2026, Safari Industries shares are trading at ₹1,530.00 on NSE and ₹1,531.10 on BSE, reflecting a 1.79% return over the last 3 years. The company has a market capitalization of ₹7,380 crore and trades within a 52-week range of ₹1,363.10 to ₹2,507.10. The stock's P/E ratio stands at 44.72 times, representing a 79% discount to its peers' median range of 212 times, while the P/B ratio is 6.69 times, matching the peer median range. The company's revenue stands at ₹2,108 crore with profit of ₹165 crore and promoter holding of 44.7%.
In a quarter marked by sharp raw material inflation, Safari Industries India reported steady performance with EBITDA margin of 12.8%, which exceeded the previous estimate of 12.0%. As reported by Prabhudas Lilladher, this performance was aided by calibrated price hikes, backward integration benefits from captive manufacturing of wheels & trolleys at Jaipur, and liquidation of low-cost inventory. The company implemented price hikes of 4-6% in May 2026 to counter inflationary pressures.
According to Prabhudas Lilladher's analysis, the growth kicker is likely to come from licensing of Carlton (launch likely in October 2026) and increase in utilization at Jaipur facility where capacity expansion to 6.5 lakh pieces per month is complete. The brokerage expects these factors to drive 14% sales CAGR over the next 2 years, with gross margins projected at 46.2%/46.8% and EBITDA margins of 12.5%/13.7% in FY27E/FY28E respectively.
While acknowledging potential near-term margin headwinds due to raw material price inflation, Prabhudas Lilladher believes these issues are transitory in nature. The brokerage expects that once input costs stabilize, the benefits of price hikes and captive manufacturing will become visible. The target price of ₹1,953 is based on the company's strong fundamentals and growth prospects in the automotive components sector, with the stock currently classified as a Small Cap company according to SEBI classification.
