How 2Point2 Capital’s bet on Safari got it a suitcase full of returns

Sudhir Jatia, chairman and MD, Safari Industries India

Synopsis
Under industry veteran Sudhir Jatia, Safari’s topline has recorded a CAGR of 29% over the last decade. In comparison, this stands at 10% for market leader VIP. Despite being a mass-market brand, Safari not only survived the pandemic but also has emerged stronger, eating into the market share of unorganised luggage makers as well as premium brands.

When Savi Jain, co-founder of 2Point2 Capital Advisors, a portfolio management service (PMS) fund, took a bet on Safari Industries in 2016, the company had a market capitalisation of less than INR400 crore. As a value investor, Jain always looks for stocks trading at a lower valuation but have huge potential to do well in the future. He typically hunts for small-cap stocks where he can take a concentrated position for a longer period and wait