Title: Relationship of Nifty 50 with Safari Industries India Ltd.
Author: Shreya Umesh Poojari (40)
1. Introduction:
Safari Industries has been crafting quality luggage, backpacks, school bags, fashion bags, and travel accessories for over a decade. With brands like Safari, Genius, Genie, and Magnum, it brings thoughtfully designed products to travellers across India. Headquartered in Mumbai, powered by 1,800 passionate Safarians and driven by ambition to become India’s No. 1 Bags Company, targeting ₹1,000 crore in revenue. Recognized in the Financial Times Top 1000 Fastest Growing Companies in Asia-Pacific (2017), it continues to grow at a rapid pace.
2. Objective:
Calculation of Beta and observe its significance.
3. Literature Review:
- Market Positioning
Safari is recognized for its “value-for-money” focus, successfully transitioning consumers from soft-sided to durable hard-sided luggage. Way2Wealth (2024) suggests their “Digital First” strategy has secured a dominant position in Indian e-commerce channels.
- Financial Agility
Comparative literature identifies Safari as a leader in inventory management, maintaining a leaner balance sheet than its primary competitors. Trendlyne (2026) observes that this operational agility has supported consistent double-digit revenue growth.
4. Data Collection:
Data for Nifty 50 And Safari Industries India Ltd. was downloaded from NSE India.com for the period of 1/1/2025 to 31/12/2025. Friday closing prices of Nifty 50 and Safari Industries India Ltd. was segregated. Weekly returns of Nifty 50 and Safari Industries India Ltd. were calculated. Weekly returns of Nifty 50 were taken as X and weekly returns of Safari Industries India Ltd. were taken as Y. Y was regressed on X.
5. Data Analysis:
The following data was derived for the taken time period:
No of observation: 48
Intercept: 0.5391
Beta: 0.4986X
t Stat (Beta): 1.2973
R Square: 0.0353
F: 1.6831
P value: 0.2010 (Since P > 0.05, the relationship is not statistically significant)
6. Interpretation:
The regression equation obtained is:
Y = 0.5391 + 0.4986 X
The equation indicates the relationship between Market Return (X) and Safari Industries India Ltd. Return (Y). The R Square value is 0.0353, which means 3.53% of the variance in returns is explained by market return. The remaining 96.47% is due to other factors not included in the model. model. The F value is 1.6831 and its significance value is 0.2010, which is greater than 0.05, hence the model is not statistically significant. The p-value of the coefficient is 0.2010, which is greater than 0.05, indicating that market return does not have a significant impact on stock return. The intercept is 0.5391, which means if market return is 0, then return on the Safari will be 53.91%. The beta (coefficient of X) is 0.4986, meaning for every 1 unit increase in market return, Safari’s return increases by 0.4986 units. The number of observations is 48.
7. Conclusion:
The beta (coefficient of X) for the stock is 0.4986. This is lower than the market beta of 1, indicating that the stock is less volatile and suitable for long-term investment.
8. Reference:
Trendlyne. (2026),Safari Industries (India) Ltd: Stock Analysis and Financial Fundamentals, Markets Data.
Way2Wealth Brokers. (2024), Safari Industries (India) Ltd. – Quick Insight, Sector Analysis Report.