IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-02-27/samsonite-is-said-to-consider-options-amid-takeover-interest" target="_blank" rel="noopener">reports</a> that <a href="https://www.smartkarma.com/entities/samsonite-international-sa" target="_blank" data-smartkarma-citation="entities:12790:1" rel="noopener">Samsonite (1910 HK)</a> is drawing takeover interest from several PE firms which aim to relist Samsonite in the US to draw a higher valuation. </li>
<li>A standard takeover premium (around 30%) should be sufficient due to the shareholder register. There is no single large shareholder(s) to pose an issue to an offer. </li>
<li>The probability of an offer is medium, with an offer price likely around HK$30.00. Irrespective of a binding offer, the upside remains as Samsonite trades at an undemanding valuation. </li>
</ul>


Bloomberg reports that Samsonite (1910 HK) is drawing takeover interest from several PE firms which aim to relist Samsonite in the US to draw a higher valuation. 
A standard takeover premium (around 30%) should be sufficient due to the shareholder register. There is no single large shareholder(s) to pose an issue to an offer. 
The probability of an offer is medium, with an offer price likely around HK$30.00. Irrespective of a binding offer, the upside remains as Samsonite trades at an undemanding valuation. 


Samsonite (1910 HK): Evaluating a Potential Privatisation

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Safari Industries India / Equity Bottom-Up

<ul><li>The management indicated to register growth higher than pre-Covid levels in the H2FY22 on account of an increase in domestic leisure travel, marriage season, etc</li><li>Given constraints on discretionary spending, consumers have become price-conscious and thus prefer mid-premium/value brands where Safari is well positioned.</li><li>We maintain our BUY rating with a revised TP of Rs 1100/share (previously Rs 925/share) as we value the stock at 45x PE FY24E.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

The management indicated to register growth higher than pre-Covid levels in the H2FY22 on account of an increase in domestic leisure travel, marriage season, etcGiven constraints on discretionary spending, consumers have become price-conscious and thus prefer mid-premium/value brands where Safari is well positioned.We maintain our BUY rating with a revised TP of Rs 1100/share (previously Rs 925/share) as we value the stock at 45x PE FY24E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Safari Industries: Ready To Bag On Growth Opportunities As Demand Revives

<p>We maintain our BUY rating and value the stock at 45x P/E on its FY24E EPS (premium to its peer) as we expect Safari to report strong growth over FY21-24E. Our revised TP is Rs 900/share (earlier Rs 790/share).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We maintain our BUY rating and value the stock at 45x P/E on its FY24E EPS (premium to its peer) as we expect Safari to report strong growth over FY21-24E. Our revised TP is Rs 900/share (earlier Rs 790/share).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Safari Industries: Well Placed for Growth as Normlacy Set In

External broker reports(aggregated public sources), IDBI Capital

IDBI Capital

<p>Safari Industries reported better than expected Q1FY22 result. Its sales/ EBIDTA were significantly above our estimates. Safari Industries' net sales increased by 5x YoY to Rs1,202 mn on a very weak base of Q1FY21. Even EBIDTA improved to Rs71 mn compared to loss in Q1FY21 and interest cost fell 49% YoY to Rs10 mn. Hence, net profit improved to Rs25 mn (loss of Rs193 mn in Q1FY21), but fell 60% QoQ as restriction in travel affected not only top-line but also logistics costs.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Safari Industries reported better than expected Q1FY22 result. Its sales/ EBIDTA were significantly above our estimates. Safari Industries' net sales increased by 5x YoY to Rs1,202 mn on a very weak base of Q1FY21. Even EBIDTA improved to Rs71 mn compared to loss in Q1FY21 and interest cost fell 49% YoY to Rs10 mn. Hence, net profit improved to Rs25 mn (loss of Rs193 mn in Q1FY21), but fell 60% QoQ as restriction in travel affected not only top-line but also logistics costs.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

India

Safari Industries India Ltd. manufactures and sells travel goods.

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Safari Industries India (SII IN)

Samsonite (1910 HK): Evaluating a Potential Privatisation

The probability of an offer is medium, with an offer price likely around HK$30.00. Irrespective of a binding offer, the upside remains as Samsonite...

Arun George

Safari Industries: Ready To Bag On Growth Opportunities As Demand Revives

Maintain our BUY rating with a revised TP of Rs 1100/share (previously Rs 925/share) as we value the stock at 45x PE FY24E.

Axis Direct

Safari Industries: Well Placed for Growth as Normlacy Set In

We maintain our BUY rating and value the stock at 45x P/E on its FY24E EPS (premium to its peer) as we expect Safari to report strong growth over...

Axis Direct

Safari Industries: Q1FY22 Result Review

Safari Industries reported better than expected Q1FY22 result. Its sales/ EBIDTA were significantly above our estimates. Safari Industries' net...

IDBI Capital

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