Safari, VIP Industries stocks surge on revival in luggage demand

18 Jul 2022 , 10:59 AM

Safari Industries touched a high of Rs 1,110 today. VIP Industries increased 5% to Rs 666.70. Prior to this, on March 31, 2022, the stock had reached a 52-week high of Rs 774.50. In contrast, at 10:14 am, the S&P BSE Sensex was up 0.72%, or 54,207 points.

Safari Industries and VIP Industries have increased by 25% and 12%, respectively, during the past month, outpacing the benchmark index’s percent growth.

Analysts predict that the travel industry will see growth thanks to a rebound in demand and rising consumer confidence. Aside from that, it is anticipated that once normalcy returns, demand for school bags, ladies’ purses, and backpacks will all increase significantly.

“However, the factors that will fuel medium- and long-term growth are still present. With increased money and rapid urbanization, the baggage sector has seen a trend toward branded items. The shift in customer behavior is also encouraging for the sector “According to an FY22 annual report from VIP Industries.

Nevertheless, the management anticipates emerging trends that will aid in market expansion, including a rise in casual baggage to accommodate a variety of needs, higher wedding spending, and travel for educational purposes. They anticipate a horizontal expansion of the market with new client cohorts.

“There are some speed bumps on the road ahead, though. The demand for air travel and luggage may decline to some extent due to rising travel costs brought on by high oil prices, geopolitical unrest, and inflationary pressures. With the continuous use of conferencing technology eliminating part of the requirement for business travel, it is also anticipated that the return of corporate travel would be gradual “Added was VIP Industries.