Elara Bets Big on Luggage Stocks: Safari, VIP Poised for Up to 37% Upside

• Elara Capital predicts India's luggage sector to grow at a 12% CAGR (2023-28), reaching ₹36,000 crore, driven by a sustained recovery cycle and rising branded penetration to 60% by 2027.
• VIP Industries' promoters sold a 32% stake to private equity firm Multiples, signaling a new phase for the company, which Elara believes is in "repair and stabilization mode."
• Safari Industries has significantly outperformed VIP Industries over five years, with its share price gaining 54% CAGR vs VIP's 2.5%, and sales growing 21% CAGR vs 5%.
• Elara sees a 37% upside for Safari Industries (target ₹3,111) due to capacity expansion and improved product mix, while VIP Industries has a 9% upside potential (target ₹430) contingent on consistent execution and market share regain.
• Increased competition from digital-native brands and D2C entrants, along with rising input costs, pose risks, especially for VIP Industries, which reported a net loss of ₹156 crore in H1.

Why It Matters: Elara Capital sees significant growth for Indian luggage stocks, with Safari leading and VIP in recovery.