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MOFSL Bullish on Luggage Stocks: Brokerage Motilal Oswal Financial Services (MOFSL) has initiated coverage on VIP Industries and Safari Industries with “Buy” calls, betting on a structural shift that is turning luggage in India from a basic travel utility into a lifestyle statement and visible status symbol.

In a report titled “Travel, mobility and aspirations unlock Luggage 2.0”, MOFSL said the Indian luggage market is moving upmarket as rising incomes, urbanisation and travel frequency drive consumers toward branded, stylish products. It expects the domestic industry to expand from about Rs 170 billion in 2024 to Rs 267 billion by 2028, a compound annual growth rate of 12 per cent, with branded players outpacing the market thanks to premiumisation and e-commerce.

“Premium luggage is evolving into a lifestyle accessory—blending status, style and self-expression—fuelled by rising incomes, social aspirations and the growing influence of digital culture,” the brokerage noted. The premium segment priced above Rs 8,000, though only 10 per cent of the market, is the fastest-growing, driven by affluent, aspirational consumers, destination weddings, student mobility and digital-first entrants like Mokobara and Uppercase, it added.

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After several years of underperformance, VIP Industries is benefiting from industry tailwinds and new management. MOFSL forecasts revenue growth of 10 per cent and EBITDA growth of 73 per cent over FY25–28, supported by volume gains and margin recovery. It has set a DCF-based target price of Rs 530 a share, implying a multiple of 47 times September 2027 earnings.

Safari Industries scaling up premium play

Safari, which leads the mass-price category with about 16 per cent share, is expanding into premium brands Safari Select and Urban Jungle and ramping up capacity at its Jaipur plant. MOFSL expects it to deliver revenue, EBITDA and net profit growth of 16 per cent, 25 per cent and 27 per cent respectively through FY28. Its target price for the stock is Rs 2,700, valuing it at 50 times September 2027 earnings.

MOFSL cited a confluence of trends underpinning its positive view: weddings and gifting boosting premium luggage sales; surging student and corporate mobility; shorter replacement cycles; and the spread of modern retail and online channels. Branded players already control 52 per cent of the market and are expected to keep gaining share as consumers seek quality, design and trusted labels.

“India’s luggage market is shifting from utility to lifestyle, driven by rising urban incomes, growing aspirations and wider exposure to global trends,” the report concluded.

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Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.