Ashish Kacholia Portfolio Stock To Trade 1:1 Ex-Bonus On Tuesday: Buy?

Safari Industries (India) is a consumer discretionary mid-cap firm. The BSE saw a 3% decrease in Safari Industries' share price on Monday at Rs 3938 a share with a market cap of Rs 9,363.72 Cr, ahead of tomorrow's ex-bonus date on December 12. The corporation announced a 1:1 bonus share, and Tuesday, December 12th, has been set as the record date for that reason.

Safari Industries Bonus Shares

"The company has fixed Tuesday, 12th December 2023 as the record date for determining entitlement of Members for issue and allotment of Bonus Equity Shares in the proportion of 1:1 i.e. 1 (One) new fully paid-up equity share of Rs. 2/- (Rupees Two) each for every 1 (One) existing fully paid-up equity share of Rs. 2/- (Rupees Two) each," said Safari Industries in a stock exchange filing.

"Pursuant to SEBI (Issue of Capital and Disclosure Requirements)(Second Amendment) Regulations, 2023 effective from 23rd May 2023, the allotment of shares in bonus issue shall be made only in dematerialized form and thus, all the eligible Members of the Company holding Equity Shares in physical mode are hereby advised to dematerialize their physical share certificates by contacting their respective Depository Participant (DP) on or before the Record Date for receipt of Bonus Equity Shares in their respective beneficiary accounts. In case, shares of the Company are held in physical form as on the Record Date, the Bonus Equity Shares so entitled, shall be transferred to the Suspense Escrow Account opened by the Company in this regard," said the company in a regulatory filing.

Safari Industries Financials

For the September quarter of FY24, Safari Industries Ltd. recorded a consolidated net profit of Rs 39.8 crore, up 53.7 per cent from Rs 26 crore in the same period the previous year. The company said in a regulatory filing that its total revenue for Q2FY24 was Rs 370.02 crore, up 18% from Rs 314 crore in Q2FY23. Earnings before interest, tax, depreciation, and amortisation (EBITDA) jumped by 51.3 per cent to Rs 63.4 crore for the second quarter of the current financial year from Rs 41.9 crore in the same time last year.

Safari Industries Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "SAFARIND is currently trading at Rs 3950, and the daily chart reveals a double top pattern after a prolonged bullish rally, indicating a potential reversal. Profit booking is evident from higher levels, and the price is supported by the 100-day Exponential Moving Average (EMA), suggesting stability.

The current trend is sideways to bearish, with a trading range between Rs 3945 and Rs 4554. Immediate support levels are identified at Rs 3600 and Rs 3450, while resistance levels stand at Rs 4554 and Rs 4800. A decisive close above Rs 4554 with substantial volume could pave the way for a short-term target of Rs 5370."

"Furthermore, SAFARIND demonstrates a bullish trend, trading above key EMAs (100-day and 200-day). The Relative Strength Index (RSI) at 33.258 indicates upward momentum and increasing buying strength, supported by a positive crossover in the Stochastic Relative Strength Index (Stoch RSI). To manage risk effectively, it is recommended to set a stop-loss (SL) at Rs 3625 to safeguard against unforeseen market reversals. A prudent approach involves considering buying on dips around Rs 3800 and Rs 3700 levels," the analyst stated.

"In summary, based on technical analysis and prevailing market conditions, SAFARIND presents a promising buying opportunity with a target price of Rs 5370. However, it is crucial to implement proper risk management measures," Mandar Bhojane further added.

Safari Industries Shareholding Pattern

During Q2FY24, the company reported promoters' shareholding of 46.96%, FIIs stake of 12.95%, DIIs stake of 17.51%, and public stake of 22.59%. As per the shareholding pattern of Safari Industries available on the BSE for the July to September 2023 quarter, ace investor Ashish Kacholia held 5 lakh equity shares which is 2.10% of fully paid-up share capital of the company.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.