DOMS Industries Limited incorporation in year 2006, DOMS Industries Limited is a stationery and art product company primarily engaged in designing, developing, manufacturing, and selling a wide range of these products under the flagship brand, DOMS along with other brand/sub-brands including C3, Amariz, and Fixyfix.
The company offers stationery and art materials to consumers, which are classified into seven categories:
(i) Scholastic stationery
(ii) Scholastic art materials
(iii) Paper stationery
(iv) Kits and combos
(v) Office supplies
(vi) Hobby and craft
(vii) Fine art products.
The company has an exclusive tie-up with certain entities of the FILA Group for the distribution and marketing of their products in South Asia. Till date of 30/09/ 2023, the company has a strong, global multi-channel distribution network in over 45 countries in the USA, Africa, Asia Pacific, Europe, and the Middle East.The company operates 13 manufacturing facilities in Umbergaon, Gujarat, spread over an area of about 34 acres, equipped with modern and automated production processes, and one manufacturing facility in Bari Brahma, in Jammu and Kashmir, spread over approximately 2 acres of land with an area of approximately 0.07 million square feet, focused on manufacturing wooden slats from locally sourced timber. As of September 30, 2023, DOMS Industries employs 50 personnel as part of their R&D and designing team.
In Fiscals 2021, 2022, and 2023, and the six months ended September 30, 2023, the company has sold an aggregate of 1.48 billion units, 3.06 billion units, 3.93 billion units, and 2.2 billion units of products across its product categories, respectively and achieved Gross Product Sales of ₹4,130.45 million, ₹6,930.95 million, ₹12,317.34 million, and ₹7,768.39 million respectively.
Growth:-
Revenue has grown at a compound annual growth rate (CAGR) of 23% over the past three years.Net profit has witnessed an even faster CAGR of 42% during the same period.The company has achieved this growth through organic expansion and strategic acquisitions, diversifying its product portfolio and expanding its geographical reach.
Balance sheet strength:-
DOMS boasts a healthy Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of over 20%. Net profit margin has consistently improved, reaching almost 18% in FY23. These margins indicate strong operational efficiency and profitability. DOMS Ind. having market capital of 79.80 Billion
Financial Strength:-
The company maintains a healthy debt-to-equity ratio of around 0.6, indicating a manageable debt burden. Free cash flow has been positive, providing flexibility for future investments and dividend payouts.
Ratio:-
DOMS currently trades at a price-to-earnings (P/E) ratio of around 50, which is higher than the average for its peers. This premium valuation reflects the company's strong growth potential and solid financial performance. However, some analysts believe the stock may be overvalued due to its high P/E ratio.
Risks:-
The company's dependence on the stationery and writing instruments market, which is subject to cyclical trends, could pose a risk. Rising input costs could affect profitability.Increased competition from domestic and international players could also impact market share.
Overall:-
DOMS Industries has demonstrated impressive growth and profitability in recent years. The company's strong financial performance and solid fundamentals make it an attractive investment for long-term investors. However, the high valuation and potential risks associated with the industry need to be carefully considered before making any investment decisions.DOMS ind. has listed at 1400/ Share (Updated )
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Basic IPO details:-
|
IPO DATE |
13/12/2023TO 15/12/2023 |
|
FACE VALUE |
Rs. 10 |
|
Price band |
Rs. 750 to 790/ share |
|
Lot |
Rs. 18 |
|
Basis Allotment |
18/12/2023 (expected) |
|
Listing date |
20/12/2023 (expected ) |
|
GMP |
475/ share |
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