DOMS Industries Ltd
DOMS Industries Ltd
Fast Moving Consumer GoodsKey Fundamentals
MicrocapStationaryConsumer GoodsTechnical Indicators
Key Insights
Strengths
2- Company has reduced debt.
- Company has delivered good profit growth of 84.0% CAGR over last 5 years
Weaknesses
1- Stock is trading at 11.4 times its book value
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoDOMS Industries offers strong structural growth with 24% sales CAGR over 3 years and 84% profit CAGR over 5 years, supported by 91% analyst buy ratings. However, the premium valuation at 59.3x PE and 11.65x PB demands sustained execution, making it suitable for long-term investors comfortable with elevated multiples.
- Exceptional profit growth of 84% CAGR over 5 years demonstrates strong operating leverage and margin expansion
- Compounded sales growth of 24% over 3 years and 22% TTM indicates sustained demand momentum in stationery and art products
- Overwhelming analyst consensus with 90.91% buy ratings (10 out of 11 analysts) signals strong institutional conviction
- Consistent ROE of 21-23% over 3 years shows efficient capital allocation and high-quality earnings
- Company has reduced debt, improving balance sheet strength and financial flexibility for future expansion
- Market cap of Rs 13,725 crore provides sufficient scale and liquidity for institutional participation
- 5-year compounded sales CAGR of 42% reflects successful market share gains in the FMCG stationery segment
- TTM profit growth of 14% on a high base indicates continued earnings trajectory despite normalization
- PE ratio of 59.3x is significantly elevated versus FMCG sector average of 35-45x, leaving limited margin of safety
- Stock trading at 11.65x book value implies heavy premium pricing with risk of de-rating on any earnings miss
- Stock price has declined 7% over the past 1 year, underperforming broader market indices
- Dividend yield of just 0.13% offers negligible income return, making total return entirely dependent on capital appreciation
- TTM profit growth of 14% represents sharp deceleration from the 34% 3-year CAGR, suggesting growth normalization
- One analyst has a sell rating (9.09%), indicating not all institutional views are uniformly positive
- ROE has declined from 23% (3-year average) to 21% (last year), a modest but noteworthy downward trend
- Limited price discovery data with 52-week high and low at 0 suggests potential liquidity or data concerns
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 15h ago- FILA sells 7% stake at discount Jun 17
Promoter FILA sold 44.1 lakh shares (7.3% equity) worth ₹980.6 crore at ₹2,100/share, a 9% discount to market price, reducing its holding from 26.01% to 19.01%. Stock fell nearly 5% intraday on the block deal execution.
- Stock down 10.7% YTD Jun 16
DOMS shares are down 10.7% in 2025 after hitting an all-time high of ₹3,115 in December 2024, with primary trend likely sideways-to-negative below ₹2,500 resistance per technical analysis.
- High capex phase ahead Jun 11
Management guided ₹250-275 crore capex in FY27 and signaled a multi-year high-capex cycle for its 45-acre manufacturing facility and newly acquired land, which may pressure free cash flows.
- Stretched valuation at 65x PE Jun 16
DOMS trades at a P/E ratio of 65.29 with market cap of ₹13,974.70 crore, leaving limited margin of safety against execution risks.
- Reynolds brand acquired for ₹31 crore Jun 11
DOMS acquired Reynolds Pens' assets, IP, trademarks, and patents for ₹31 crore ($3.7 million) from Newell Brands group, with completion on July 1, 2026. Stock surged 5.6% on the announcement, gaining an 81-year-old brand with significant India presence.
- Strong Q4 and FY26 results Jun 16
Q4 FY26 net profit grew 17.2% YoY to ₹56.7 crore and revenue rose 18.7% to ₹604 crore; full-year revenue grew 21.6% to ₹2,326.4 crore, exceeding management guidance.
- Healthy operating cash flow Jun 11
Company generated ₹254.3 crore operating cash flow in FY26 with cash balance of ₹61.8 crore as of March 31, 2026, supporting its growth investments.
- FILA 90-day lock-in post sale Jun 17
FILA's remaining 19.01% stake is locked in for 90 days post-transaction, providing near-term overhang relief and retaining its position as single largest shareholder.
- Director re-appointment ballot Jun 15
DOMS initiated postal ballot for re-appointment of MD Santosh Raveshia and WTD Sanjay Rajani for five-year terms starting January 1, 2027.
- Technical support at ₹2,050 zone Jun 16
Stock found support around ₹2,050-2,000 levels with immediate resistance at ₹2,430 (200-DMA) and ₹2,500 trendline resistance, currently trading around ₹2,300.
TL;DR: DOMS delivered solid FY26 growth (21.6% revenue, 17.2% profit growth) and made a strategically smart acquisition of the Reynolds brand at a bargain price. However, the FILA stake sale of 7% at a 9% discount created near-term selling pressure, and the stock remains in a corrective phase down 10.7% YTD from its December 2024 highs. The 90-day lock-in on FILA's remaining 19% removes immediate overhang risk, but the high-capex cycle and stretched 65x PE valuation mean execution must remain flawless for the stock to reclaim its highs.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 336 | 379 | 382 | 372 | 404 | 445 | 458 | 501 | 509 | 562 | 568 | 592 | 604 |
| Expenses | 275 | 317 | 317 | 302 | 328 | 359 | 372 | 413 | 420 | 464 | 468 | 489 | 503 |
| Operating Profit | 62 | 62 | 65 | 69 | 76 | 86 | 86 | 88 | 88 | 99 | 100 | 103 | 101 |
| OPM % | 18% | 16% | 17% | 19% | 19% | 19% | 19% | 18% | 17% | 18% | 18% | 17% | 17% |
| Other Income | 1 | 1 | 1 | 2 | 6 | 6 | 6 | 6 | 5 | 4 | 6 | 4 | 4 |
| Interest | 3 | 4 | 4 | 5 | 4 | 4 | 4 | 4 | 4 | 3 | 2 | 2 | 3 |
| Depreciation | 11 | 11 | 12 | 14 | 14 | 15 | 16 | 18 | 21 | 20 | 22 | 22 | 23 |
| PBT | 49 | 49 | 50 | 52 | 63 | 73 | 72 | 73 | 69 | 79 | 82 | 82 | 79 |
| Tax % | 26% | 25% | 25% | 26% | 25% | 26% | 26% | 26% | 25% | 26% | 26% | 25% | 26% |
| Net Profit | 36 | 36 | 38 | 39 | 47 | 54 | 54 | 54 | 51 | 59 | 61 | 61 | 58 |
| EPS in Rs | 912 | 929 | 6.4 | 6.15 | 7.44 | 8.54 | 8.46 | 8.36 | 7.98 | 9.44 | 9.6 | 9.54 | 9.35 |
Profit & Loss
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 654 | 403 | 684 | 1,212 | 1,537 | 1,913 | 2,326 |
| Expenses | 578 | 373 | 614 | 1,025 | 1,264 | 1,564 | 1,924 |
| Operating Profit | 76 | 30 | 70 | 187 | 273 | 349 | 403 |
| OPM % | 12% | 7% | 10% | 15% | 18% | 18% | 17% |
| Other Income | 1 | 6 | 3 | 5 | 10 | 22 | 19 |
| Interest | 4 | 9 | 10 | 12 | 17 | 15 | 11 |
| Depreciation | 25 | 35 | 38 | 41 | 51 | 69 | 88 |
| PBT | 48 | -8 | 24 | 139 | 214 | 287 | 322 |
| Tax % | 21% | -21% | 29% | 26% | 26% | 26% | 26% |
| Net Profit | 38 | -6 | 17 | 103 | 160 | 214 | 240 |
| EPS in Rs | 968 | -242 | 386 | 2,572 | 25.23 | 33.34 | 37.93 |
| Div. Payout % | 0% | 0% | 39% | 10% | 10% | 9% | 10% |
Balance Sheet
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Equity Capital | 0.37 | 0.37 | 0.37 | 0.37 | 61 | 61 | 61 |
| Reserves | 240 | 233 | 247 | 337 | 754 | 942 | 1,159 |
| Borrowings | 58 | 134 | 123 | 140 | 172 | 212 | 141 |
| Other Liabilities | 101 | 90 | 127 | 163 | 204 | 297 | 351 |
| Total Liabilities | 400 | 458 | 497 | 640 | 1,190 | 1,511 | 1,712 |
| Fixed Assets | 196 | 229 | 227 | 320 | 498 | 690 | 793 |
| CWIP | 1 | 3 | 4 | 7 | 25 | 60 | 162 |
| Investments | 0 | 0 | 0 | 2 | 1 | 1 | 2 |
| Other Assets | 203 | 226 | 267 | 311 | 665 | 759 | 756 |
| Total Assets | 400 | 458 | 497 | 640 | 1,190 | 1,511 | 1,712 |
Cash Flow
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Operating | 37 | 15 | 51 | 173 | 183 | 183 | 254 |
| Investing | -55 | -19 | -34 | -136 | -458 | -140 | -149 |
| Financing | 17 | 25 | -31 | -12 | 297 | -40 | -113 |
| Net Cash Flow | -1 | 21 | -13 | 25 | 22 | 4 | -7 |
| Free Cash Flow | -19 | -1 | 16 | 38 | 29 | -26 | -38 |
| CFO/OP | 70 | 58 | 78 | 111 | 91 | 74 | 63 |
Ratios
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Debtor Days | 20 | 38 | 26 | 11 | 15 | 26 | 26 |
| Inventory Days | 120 | 180 | 134 | 88 | 92 | 99 | 105 |
| Days Payable | 62 | 85 | 69 | 42 | 37 | 37 | 35 |
| Cash Conversion Cycle | 78 | 133 | 92 | 57 | 70 | 88 | 96 |
| Working Capital Days | 22 | 0 | 16 | 2 | 25 | 39 | 44 |
| ROCE % | — | -1% | 9% | 34% | 31% | 26% | 24% |
Documents
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Company Information
Incorporated in 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.[1]