While Safari is making the most of the opportunities, VIP remains in a weak spot
We do not expect any magical revival of fortunes in VIP. The numbers will improve gradually
PRO Only Highlights
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Quarterly performance largely backed by improved realisations
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Medium-term triggers China plus and protectionist measures for tyre industry
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Valuations not inexpensive; but improved medium-term outlook
–
Quarterly performance largely backed by improved realisations
–
Medium-term triggers China plus and protectionist measures for tyre industry
–
Valuations not inexpensive; but improved medium-term outlook
Highlights
Macro tailwinds strong for the luggage sector
Record number of weddings and travel demand add to near-term buoyancy
Last reported quarter was strong for Safari
Safari cementing its market position, own capacity a structural tailwind for margin
VIP’s poor show continues, losing market share
With top management changes no imminent recovery expected
Promoter stake sale a possibility for VIP
A strong tailwind from favourable macro factors is benefitting the luggage sector, including the near-term kicker from a seasonally strong October-December quarter that sees a surge in…