BUZZ-India's VIP Industries planning double-digit price hike, may lose market share, PL Capital says

** PL Capital says VIP Industries VIPI.NS planning double-digit price hike, citing channel checks as raw material prices have jumped driven by Middle East war

** "Traditional thinking suggests price hike by one player should eventually lead to an industry-wide price reset," PL Capital says

** However, channel checks suggest Safari Industries (India) SAFA.NS not too keen on hikes at the moment - brokerage

** PL Capital says price hikes could lead to market share loss for VIPI, while SAFA's margins may deteriorate if it doesn't hike prices

** "We maintain our view that luggage industry is in for a structural derating given stiff competition amongst incumbents and emergence of new age direct to consumer brands" - PL Capital

** Maintains "reduce" rating on VIPI and "hold" on SAFA

** VIPI rated "hold", SAFA "strong buy" on average by 10 brokerages - data compiled by LSEG

** VIPI up 5.6%, down 16.3% YTD%; SAFA up 7.2%, trimming YTD losses to 29.5%





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