Safari Industries reported better than expected Q4FY21 result. Its sales/ EBIDTA were 13%/44% above our estimates, said, IDBI Capital. Safari Industries' net sales fell by 7.2% YoY to Rs 1,329 million amidst weakness in travel & tourism.

Nevertheless, EBIDTA improved 2.6% YoY to Rs 134 million as operating expenses fell 8.2% YoY. Interest cost fell 69.1% YoY to Rs 7 million. Hence, net profit increased by 32.9% YoY to Rs 63 million.

Commenting on the result review, IDBI Capital said, "We have cut our FY23 sales/EBITDA estimate by 27%/75% as we anticipate the second wave of Covid-19 to affect H1FY22 sales severely. We also cut our FY23 sales/EBTIDA/EPS forecasts by 12%/12%/6%. We continue to value the stock at a PER of 32x FY23 EPS to derive a target price of Rs 567 (earlier Rs 580) and maintain our Hold rating on the stock."

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