Luggage stocks in focus: Safari, VIP Inds surge up to 7% on demand revival


Shares of luggage companies were in focus as they surged up to 7 per cent on the BSE in Monday’s intra-day trade on hopes of upbeat demand post resurgence in travel sector.

Safari Industries hit a record high of Rs 1,110, as the stock rallied 7 per cent on the BSE in intra-day trade. Meanwhile, gained 5 per cent to Rs 666.70. Earlier, the stock had hit a 52-week high of Rs 774.50 on March 31, 2022. In comparison, the S&P BSE Sensex was up 0.72 per cent at 54,207 points at 10:14 am.

In the past one month, Safari Industries and have surged 25 per cent and 12 per cent, respectively, as against 5 per cent rise in the benchmark index.

Analysts expect that the travel sector is poised for a resurgence on the back of demand revival and increase in consumers confidence. That apart, the demand for backpacks, ladies’ handbags, and school bags is also expected to rebound strongly as normalcy resumes.

“The medium and long-term growth drivers, nonetheless, remain intact. The luggage industry has witnessed a shift towards branded goods with rising income and rapid urbanisation. The change in behavioural patterns of consumers also augurs well for the industry,” said in a FY22 annual report.

That said, the management foresees new trends that will help expand the market – growth in casual luggage to meet varied requirements, increased spends towards wedding, and travel for education. They expect the industry to expand horizontally with new customer cohorts.

“However, the road ahead does have some speed breakers. Rising travel fares due to high oil prices, geopolitical strife, and inflationary pressures may erode some demand for air travel and luggage. Also, the return of corporate travel is expected to be slow with the continued use of conferencing technology replacing some of the need to travel for work,” VIP Industries added.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Source link

Comments are closed.