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ACC Limited – Capacity Expansion And Premiumization To Drive Growth

ACC Limited (ACC) – established by historically merging ten cement companies in 1936, has emerged as one of the leading players in the Indian building materials space. The company has 17 modern cement factories, 79 ready-mixed concrete plants, a vast distribution network of over 11,000 dealers, and pan-India sales offices, making it a formidable player in the cement industry.In 2005, ACC became part of the Holcim Group of Switzerland.

Key Rationale

* Capacity Expansion: The company is expanding its cement grinding capacity by 14% from the present 34.5 million tons per annum (mntpa) to 39.2 mntpa. This will enable it to cater to the high-demand market of Central India which is exhibiting promising growth potential driven by increasing housing and infra-activities. The new capacity is expected to be commissioned in CY22. Factoring in the additional capacity and robust demand, we expect the company to deliver volume growth of 7% CAGR over CY21-CY23E and clock revenue CAGR of 9% over the same period  A higher share of premium products to improve margin profile: The company caters to the retail segment (~80% of the cement sales) through a robust channel network of 11,000 dealers and 55,000 channel partners distributed across the country. Additionally, the company’s continues to sharply focus on increasing the share of premium brands of Cement, RMC, and Value-Added Products & Services (VAPS) business which will lead to a better product mix and consequently superior margins. We estimate EBITDA margins to improve to 21% in CY23 from the current 19%.  Resilient performance in Q3CY21: The company reported healthy operating performance in Q3CY21 with Revenue/EBITDA/APAT growth of 6%/6%/24% on a YoY basis despite cost headwinds. This was backed by efficiency measures undertaken by the company over the last few years as well as its focus on premiumization. It reported healthy EBITDA margins of 19% during the quarter. The blended realization also improved by 4.9% YoY to Rs 5,706/tonne. Furthermore, RMX volume improved during the quarter by 46% on a YoY basis.

* Key risks:a)Demand slow down, b) Higher input cost.

Outlook & Valuation

* Outlook: The company’s outlook over CY21E-23E continues to be robust in light of notable revival in infra and housing projects with higher spending by the government, strategic capacity expansion in demand accretive Central India, and the company's focus on increasing the share of the premium and value-added products. These factors will ensure higher volume and revenue growth moving forward. We believe ACC is wellpositioned in its key markets with better pricing and volume growth even though we foresee input costs to remain elevated in the near future

* Valuation: With its unwavering focus on cost optimization measures through project PARVAT, robust product demand, and improved pricing, we expect the company to register Revenue/EBITDA/APAT CAGR of 9%/13%/14% over CY21-CY23E driven by volume CAGR of 7% over the same period. The stock is currently trading 9x and 8x CY22E and CY23E EV/EBITDA which is attractive compared to other larger peers in the sector. We, therefore, recommend a BUY on the stock with a target price of Rs 2,570/share which implies an upside of 15% from the CMP.

BUY ACC Limited CMP:2236 ; Target Price: 2,570; Upside: 15%

 

KNR Constructions Limited – Well-positioned To Capitalize On The Industry Tailwinds

KNRCLis one of India’s leading infrastructure companies that provide Engineering, Procurement and Construction (EPC) services. Over the years,it has developed expertise and capabilitiesto efficiently and timely execute technically complex projects on an individual as well as a joint venture basis. The company is currently handling 10operational HAM (under-construction), BOT, and Annuity projects in addition to sizable EPC irrigation and flyover projects.

Key Rationale

* Proactive government support: The road construction industry in India is going through a paradigm shift in terms of investments and policy support. With the government’s increased focus on developing road infrastructure, various projects such as NIP(National Infrastructure Pipeline), Jal Jeevan Mission, and Irrigation projects are expected to play a pivotal role in providing massive opportunities to the well-placed incumbents like KNRCL.  Robust growth visibility: The company's strong and diversified order book provides it with a sustainable revenue growth visibility for the next 2-3 years. Its current order book stands at over Rs12,000 Cr comprising EPC, HAM, and Irrigation projects. Factoring in its order book and execution prowess, we expect the company to deliver a robust revenue CAGR of 18% over FY21-FY24.  A leading and experienced EPC player in the road sector: KNRCLis a leading EPC player in the road sector with over four decades of extensive experience, enabling it to successfully scale its operation over the years. Strong project execution skills and timely delivery of projects are its key competitive strengths.  Key risks: Slow down in governmentorders, Raw Material price fluctuation

Outlook & Valuation

* Outlook: The company’s outlook over FY22E-24E continues to be robust in light of its high order book with 2-3 years of revenue visibility, better traction in road projects, favourable industry tailwind, and strong track record of highquality and timely execution of projects. These factors will ensure higher revenue growth for the company moving forward. The company is well-aligned to achieve growth by leveraging favourable industry tailwindscreated by the government’s thrust on developing infrastructure, especiaFvlly on the highways, expressways, and other road projects

* Valuation : We expect the company to report Revenue/EBIDTA/APAT growth of 18%/17%/30% CAGR respectively overFY21-24E. The stock is currently trading at 17x and 15x FY23E and FY24E earnings. We recommend a BUY in the stock with the target price of Rs 325/ share, implying an upside potential of 15% from CMP.

Buy KNR Constructions Limited CMP:282; Target Price:325 Upside: 15%

 

Cyient – Resilient Business Structure and Long-term Contracts toAccelerate Growth

Key Rationale

* Robust performance:Cyient reported robust results in Q2FY22 with revenue for the quarter at Rs 1,112 Cr, improving by 4.6 % QoQ and 11.2% YoY. Operating Margins expanded by 90bps QoQ to 15.5%. Operating margins of the Services segment grew by 90bps QoQ and stood at 15.5%. DLM margins stood highest at 6.8%, advancing from 5.6% in the quarter before and were driven by the company’s strong execution during the quarter. The company’s Net profit for Q2FY22 stood at Rs 121 Cr, registering a growth of 5.5% QoQ. The management expects double-digit revenue growth for FY22 with the Communications growth to be led by Network Transformation, E&U (to be benefited from IG Partners acquisition), and Transportation (to be led by the Rail).

* Healthy deal pipeline: The DLM business is expected to grow in the range of 15% to 20% and Operating Margins to improve by 250bp

* Large deal wins along with growth in key accounts: Growth in key accounts and a few large deal wins (4 key deals in fibre, wireless, system integration, and 5G rollout) and accelerated deployment of 5G led segment significantly contributed to the Communication vertical’s growth. The company’s outlook remains positive, supported by robust investments in technology-led network transformation and accelerated deployment of broadband and wireless infrastructure.

Outlook & Valuations

* E&U vertical witnessed a positive momentum which is likely to continue in FY22 led by a sharp focus on expanding the presence in the EPC sector. For Utilities, the company intends to focus on digital solutions in design automation and predictive maintenance applications for asset management.

* The transportation vertical declined due to the right shifting of projects from clients. The company is optimistic about the recovery in FY22, led by traction in key client accounts along with a positive outlook driven by higher spends in Rail Transportation as well as consolidation in the Rail Industry.

* Valuation: We believe Cyient has a strong business structure from a long-term perspective and possesses multiple long-term contracts with the world’s leading brands. Furthermore, with depreciation in INR, lower travel cost, and lower on-site expenses, the company’s EBITDA margins are likely to expand in the near term. Against this backdrop, we recommend a BUY and assign a 22x P/E multiple to its FY24E earnings of Rs 5

Buy Cyient –CMP: 1,094 Target Price: 1,300 Upside:19%

 

Mindtree – Encouraging Growth, Superior Visibility

Mindtree Ltd – a part of the L&T group, is one of India’s leading IT services and specialized digital solutions providers based in Bengaluru. It provides industry-wide solutions including next-gen services such as Cloud computing, Digital transformations, IoT, and Machine learning, among others. The company also has expertise in providing solutions in HI-Tech, Manufacturing, Banking and Financial Services.

Key Rationale

* Proactive government support: The road construction industry in India is going through a paradigm shift in terms of investments and policy support. With the government’s increased focus on developing road infrastructure, various projects such as NIP(National Infrastructure Pipeline), Jal Jeevan Mission, and Irrigation projects are expected to play a pivotal role in providing massive opportunities to the well-placed incumbents like KNRCL.

* Robust growth visibility: The company's strong and diversified order book provides it with a sustainable revenue growth visibility for the next 2-3 years. Its current order book stands at over Rs12,000 Cr comprising EPC, HAM, and Irrigation projects. Factoring in its order book and execution prowess, we expect the company to deliver a robust revenue CAGR of 18% over FY21-FY24.

* A leading and experienced EPC player in the road sector: KNRCLis a leading EPC player in the road sector with over four decades of extensive experience, enabling it to successfully scale its operation over the years. Strong project execution skills and timely delivery of projects are its key competitive strengths.

* Key risks: Slow down in governmentorders, Raw Material price fluctuations

Outlook & Valuation

* Outlook: The company’s outlook over FY22E-24E continues to be robust in light of its high order book with 2-3 years of revenue visibility, better traction in road projects, favourable industry tailwind, and strong track record of highquality and timely execution of projects. These factors will ensure higher revenue growth for the company moving forward. The company is well-aligned to achieve growth by leveraging favourable industry tailwindscreated by the government’s thrust on developing infrastructure, especially on the highways, expressways, and other road projects

* Valuation : We expect the company to report Revenue/EBIDTA/APAT growth of 18%/17%/30% CAGR respectively overFY21-24E. The stock is currently trading at 17x and 15x FY23E and FY24E earnings. We recommend a BUY in the stock with the target price of Rs 325/ share, implying an upside potential of 15% from CMP.

Buy Mindtree CMP: 4,555 Target Price: 5,100 Upside:12%

 

ICICI Securities – More Than Just a Broker!

ICICI Securities Limited (ISEC) is an integrated and technology-based firm offering a wide range of services including retail and institutional broking, financial products distribution, private wealth management, and advisory services. The company’s total asset under management (AUM) stands at Rs 5.1 Tn across different products. Currently, it is the 4th largest broker (in terms of NSE active clients) and commands a market share of 8.6%.

Key Rationale

* Robust Q2FY22 performance: ISEC reported an excellent performance in Q2FY22 with the highlight being strong customer addition of ~583K customers which was primarily aided by digital channel sourcing. We expect the share of digital sourcing to improve moving forward and the customer addition momentum to continue, which in turn, will aid in ARPU and AUM growth.

* Focus on augmenting distribution business: The distribution business delivered a robust performance in Q2FY22 and its healthy and increasing contribution to the top line bodes well for ISEC as it endeavours to reduce its dependence on the broking business. ISEC continues to focus on non-equity businesses (i.e. MFT+ESOP, Distribution and Wealth Management) and improve its contribution in the total revenue moving forward. Additionally, initiatives such as ‘Prime’, ‘NEO’, ‘One Click Equity’ etc. are expected to improve customer activation and support broking revenues.

* Cost optimization efforts underway: The C-I Ratio appears to have plateaued at ~45% over the past few quarters. The management is confident of bringing it down to sub-40% despite continued spending on marketing and technology. C-I ratio improvement would be primarily driven by the reduction in the cost of sourcing as the digital channels mature and with operating leverage kicking in.

* Key risks: (1) Moderation in ADTO and Volumes and (2) Regulatory changes impacting operations

Outlook & Valuations

* Well Positioned: We maintain a positive outlook on ISEC’s long-term prospects owing to its consistent efforts on improving its revenue granularity which would ensure insulation from revenue cyclicality through various market cycles. The scaling up of the distribution business is a key positive and also aligns well with ISEC’s strategy of building 3-4 major revenue streams. The digital channel ramp-up is aiding new customer acquisitions, and this trend is likely to sustain aiding revenues and AUM growth alike. The company intends to focus on improving ARPU and the quality of the franchise, ensuring sustainable revenues generation over the medium to long term.

* Valuation: The re-engineered business model will help ISEC remain a formidable player in an intensely competitive landscape and will also enable gains in market share. We continue to like ISEC for its superior ROE profile, better brand recall, and innovative product proposition offered across customer segments, making it an eligible candidate to trade at premium valuations vis-a-vis its peers. We recommend a BUY on the stock, valuing ISEC at 20x Sept’23E EPS and arrive at a target price of Rs 940/share.

Buy  ICICI Securities CMP: 763; Target Price: 940; Upside: 23%

 

 

CAN FIN HOMES – Well-positioned for the next leg of growth

Can Fin Homes (CANF) – promoted by Canara Bank (30% stake), is a 33-year-old retail-focused housing finance company. Headquartered in Bangalore, it has a pan-India presence with over 160 branches, 21 Affordable Housing Loan Centers, and 14 Satellite Offices spread across 21 States/Union Territories.

Key Rationale

* Loan growth to pick up: While 90% of the bank’s total loans are housing loans, ~75% of this mix is contributed by the salaried employee segment. Moreover, within the salaried segment, the mix of PSU/Private is 50:50. Builder loans are negligible at less than 1%. The management indicates optimism on the growth front and expects loan growth to be in the range of ~18%-20% in FY22, fuelled by the demand in the affordable real estate segments.

* Strong asset quality: CANF’s asset quality has been one of the best amongst HFC space players despite Covid-19 disruptions. For over a decade now, while GNPAs have been less than 1%, Out of the restructured book of ~Rs 646 Cr (~2.7% of the book), the management expects ~7-8% (~Rs 50 Cr) to slip into NPA over the next few quarters. However, the company has additional provisioning of Rs 65 Cr (in excess of PCR). Furthermore, recoveries from the NPA pool may be ~ Rs 55-60 Cr in the next few quarters which may eventually result in the provisionwrite-back. NPAs are expected to be less than 1% levels over the next few quarters.

* Improving NIM: In Q2FY22, NIM stood at ~3.4%, up 3.31% QoQ. Incremental yields stood at 7.45% and incremental cost of funds stood at 4.77%. In the last six months, CANF has hiked the interest rates on its home loans. Furthermore, it continues to raise funds at competitive rates. We expect NIM and spreads to increase moving forward as yields move up.

* Outlook & Valuation: CANF’s ability to sustain asset quality even in the challenging environment reflects its fortified business model despite its much smaller book size vis-à-vis its peers. The management is now focusing more on the growth front. The affordable housing space is still relatively ‘a specialist housing finance arena’ and companies catering to this segment have traded at P/B valuations upwards of 3x. We believe CANF has notable scope for expansion in its valuations and hence we maintain a BUY rating on the stock with a target price of Rs 800 (3x FY23E ABV).

* Key risks: i) Delay in demand pick-up ii) Potential impact of COVID 3.0

Buy CAN FIN HOMES CMP:656 Target Price: 800Upside:22%

 

CHOLAMANDALAM INVESTMENT AND FINANCE CO LTD – Revival On The Cards

Cholamandalam Investment and Finance Company Ltd (CIFC) is a well-diversified play in secured asset segments such as vehicle finance and home equity (loan against property). Diversification across segments and geographies along with better access to funds (via parentage and strong credit practices) enable CIFC to withstand macro headwinds better than its peers.

Key Rationale

* Diversified portfolio mix: CIFC offers a useful combination of cyclicality (Vehicle Finance, (~70% of AUM) and secular growth (Home Equity/LAP book, (~22% of AUM), and Home Loan, (~7% of AUM)). Within vehicle finance (VF). CIFC is diversified across segments and geographies. Even with a protracted slowdown in CV, the company’s presence across Vehicle Financing verticals with reasonable pricing power will be beneficial.

* Collection trends to improve: As economic indicators begin to show signs of improvement, both vehicle purchases and customer repayments are expected to pick momentum from H2FY22 onwards. During Q1FY22, Collections Efficiencies (CE) have improved in Jun-Jul‘21 to ~100% post dips in Apr’21 and May’21. ~80-85% of the customers in Stage 2/3 have paid current month EMI in Jun-Jul ‘21. The management expects customers to mo

* Pick-up in demand: The management expects HCV demand to pick up in FY22 led by replacement demand. While the company has deliberately brought down its market share in this category, it is eyeing revival on improved demand. It has guided that the company’s growth will be better than the industry growth in VF disbursements.

* Outlook & Valuation: CIFC navigated COVID 1.0 crisis very well on account of its well-diversified portfolio, robust capitalisation, comfortable liquidity, and cost rationalisation initiatives. While asset quality is under pressure on account of COVID 2.0, provisioning is largely adequate and the management expects lower credit costs in FY22. We continue to retain our positive long-term outlook on the company backed by the marquee management and its ability to resiliently sail the business through tough periods. We keenly eye management’s plan to roll out new strategies in the near term and the possibility of a banking license. We recommend a BUY with a target price of 690 (4.5x FY23 P/ABV)

* Key risks: i) Delay in demand pick-up ii) Potential impact of COVID 3.0

Buy Cholamandalam Investment and Finance co Ltd CMP:604 Target Price:690Upside:14%

 

SBI LIFE INSURANCE – Huge Potential For Growth

SBI Life Insurance Company (SBIL) was established as a JV between the State Bank of India and BNPPC - an insurance subsidiary of BNP Paribas. SBI Life enjoys a strong competitive advantage on account of its bancassurance with the State Bank of India. Additionally, its diversified product mix and strong distribution capabilities pave the way for the company to achieve faster growth and market share gains.

Key Rationale

* APE growth to pick up: As per the reported life insurance monthly numbers in Sep ‘21, SBIL’s Q2FY22 APE grew by ~49% YoY leading to a market share gain of 331bps to 14.4%. On a half-yearly basis, its APE growth in H1FY22 stood at 41.5% YoY, driven by individual single and non-single premiums. We expect the momentum in APE growth to continue over the next couple of quarters.

* Improvement in VNB margins: We expect VNB margin improvement to continue in ensuing quarters driven by a gradual improvement in the product mix. In Q1FY22, SBIL VNBM improved to 21.2%, up 250bps YoY, supported by a superior product mix led by Non-Par products and Credit Life. Protection share has improved to 13.5%, up 90bps YoY.

*Low expense ratios: SBIL has one of the best expense ratios among life insurance companies, averaging at 10% over FY18-FY21 vis-a-vis ~15% for its peers. Low commission structures from its parent enable it to enhance margins.SB

* Untapped client base: Among the prevailing listed life insurers, SBIL has access to a huge potential client base of its parent State Bank of India, comprising ~0.5 Bn clients. Growth over the past few years has been aided by sustained investment in agency business expansion, traction in non-par savings and protection business (on a low base), and a focus on increasing credit life attachment rates

* Outlook & Valuation: SBIL, among private life insurers, possesses by far the largest bancassurance network, which plays the most critical role in providing scalability. Furthermore, SBIL has low-cost ratios which protect margins during downturns. With the gradual shift toward a profitable product mix and relatively comfortable valuations, SBIL remains well-placed in the life insurance space. We remain positive on the stock and maintain a BUY with a Target Price of Rs 1,350/share (2.6x FY24EV)

* Key risks: i) Potential impact of COVID 3.0 ii) Slow growth pick-up

Buy SBI LIFE INSURANCE CMP:1172Target Price:1350 Upside:15%

 

APL Apollo Tubes – Robust Performance Backed by Strong Fundamentals

APL Apollo Tubes (APAT) is one of India’s leading branded steel products manufacturers. Headquartered at Delhi NCR, the Company runs 10 manufacturing facilities churning out over 1,500 varieties of MS Black Pipes, Galvanized Tubes, Pre-Galvanized Tubes, Structural ERW Steel Tubes and Hollow Sections to serve industry applications like urban infrastructures, housing, irrigation, solar plants, greenhouses and engineering.

Key Rationale

* Strong Demand Scenario: In H1FY22, APAT recorded healthy volumes growth of 11% YoY despite second COVID wave. With construction activity picking up after having been subdued in Q2 due to monsoon. Further, APATs focus on growing sale of value-added products is showing results as contribution from VAP was 62% of sales in Q2FY22 versus 57% in FY21. For H2FY22, the management targets to hit volumes of 10.5 lac tonneswhich could translate into 22% YoY rise in volumes for FY22 despite a poor show in Q1. Increasing thrust of Govt on infrastructure, revival in real estate demand, increased acceptance of steel pipes in modular construction over traditional material augurs well for APAT’s long term growth.

* Market Share Gains:APAT is a leader with 50% market share in the Indian Structural Tubes Industry. During In Q1FY22, its volumes fell only by 16% QoQ while for its peers the volume de-growth was about 25% thus demonstrating market share gains. With economic activity resuming and construction demand seeing pick up we expect APAT’s market share to improve from c.50% on the back of 1) capacity expansion, 2) shift from unorganized to branded products, 3) product portfolio expansion supported by new & innovative product launches, 4) technological edge over peers.

* Key risks:resurgence in COVID cases leading to lockdown; fall in HRC prices that may impact realizations; aggressive competition from peers.

Outlook & Valuations

* Capacity Expansion: The management has indicated that by FY25 they will increase their overall capacity to 4 million tonnes from the current 2.6 million tonnes, 57% increase owing to a large growth opportunity for structural steel tubes in India driven by product innovation and cost savings. Raipur capacity expansion of 2.6 mntonnes to 3 mntonnes is on track and expected to commence in FY22, hence color-coated tubes and large diameter tubes are expected to contribute significantly to volumes in FY23.

* Target of becoming Net Debt Free by FY23E: APL Apollo’s Net Debt reduced to Rs. 1.6bn in FY21 as against Rs. 7.9bn in FY20. This was on the back of switch over to cash and carry business model with its distributors and retailers as against the earlier credit based model. This resulted in a significant reduction in working capital requirements with sharp decline in Receivables from Rs. 4.8bn in FY20 to Rs. 1.3bnin FY21. The surplus cash thus generated was utilized towards repaying debt and funding its capex requirements. Management remains confident of becoming Net Debt Free by FY23 by maintaining similar levels of working capital.

* Valuation: The current volume expansion plan with a consistent focus on growing market share, improving contribution from value-added products and leaner balance sheet bode well from the medium to long-term growth perspective. We recommend a BUY on the stock with the TP of Rs 960 (adjusted for 1:1 bonus) valuing it at 30x P/E of FY24E EPS.

Buy CMP:APL Apollo Tubes 807Target Price: 960 Upside: 19%

 

Safari Industries – Set to Pack and Roll as Normalcy Kicks In

Safari Industries India (SAFARI) Limited is engaged in manufacturing and trading of luggage and luggage accessories. The Company's product range includes polycarbonate (PC) zippered luggage. It also offers products under various categories, such as laptop bags and backpacks. It backpacks categories include Everyday Casual Backpack, Laptop Backpacks, Rucksack, Concept Backpacks, Overnighter etc.

Key Rationale

* Pick up in both domestic and international travel: The aviation minstry removed all caps on domestic air travel in view of rising passenger demand. The improved demand is driven by 1) expanding vaccination coverage across India, 2) reducing COVD-19 cases, 3) revenge travel in leisure & resumption of corporate travel and 4) onset of wedding and festive season. Besides, countries across the world are also opening up their boundaries for travellers from India. This augurs well for luggage players like Safari.

* Reducing dependence on China for sourcing:Safari has been consistently working on reducing its dependence on China from 40-50% earlier to less than 15% going forward to ensure stability in supply chain. For this, SAFARI looks at doubling its hard luggage (higher margin product) capacity at Halol while for Soft luggage it has seen increased sourcing from thrid party vendors in Bangladesh and India. These strategic measures could help Safari improve its operating margins besides improving product mix as its logistic and freight costs would reduce besides improving product mix.

* Market share gains to continue: Post pandemic as consumers’ preferences shifted to value products there was notable downtrading reported which has been an advantage for Safari vis-a-vis premium brands. Besides downtrading it has also seen share gains in the mid-premium luggage category owing to improved product offerings. Safari’s market share at ~20% versus 2% a decade ago. On the back of improved economic activity the shift from unorganized to organized and non-branded to branded luggage is expected.

Outlook & Valuations

* FY22 Outlook:The management indicated to register growth higher than pre-Covid levels in the Aug-Nov’21 period on account of an increase in the domestic leisure travel, marriage season, corporate gifting, and gradual re-opening of schools and colleges on the back of increase and expanded vaccine coverage. Further, with resumption of offices, business-related travel is expected to gradually revive from CY22 onwards. As international travel activity gathers momentum in H2FY23 the business prospects for Safari appear encouraging.

* Outlook & Valuation:In the near term, operating profitability could be under pressure owing to rising fuel costs, congestion at ports, power outages in China and sharp surge in ocean freight the overall travel led demand is expected to remain strong for the period under review. Also, with caliberated price hikes and operating leverage kicking in backed by rising demand pressure on margins could be curtailed. We remain believers in the promising Indian Luggage Industry growth story given multiple growth levers such as 1) accelerated shift from unorganized labels to brands, 2) rising preference for leisure travel, 3) increased focus on strengthening the Safari brand, and 4) de-risking of sourcing from China to alternate sources in Bangladesh and India. We recommend a BUY on the stock with the TP Rs 930/share valuing the stock at 45x P/E on its FY24E EPS as we expect Safari to report strong 40% Revenue CAGR over FY21-24E.

* Key Risks: resurgence in COVID cases impacting air travel; sudden spike in RM prices.

Buy Safari Industries CMP:840Target Price: 930Upside:11%

 

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