DOMS Industries share price rises 10% to all-time high: up 150% over the IPO price giving

Stock Market Today: DOMS Industries share price gained 10% during the intraday trades on Tuesday to all time high of ₹2035 on the NSE . With todays gains the DOMS Industries share price is up more than 150% over IPO price of ₹790. With this DOMS Industries share price has given Multibagger returns to the investors. 

Strong Q4: Margins at highest level since December'2022 quarter

DOMS Industries had recently reported its Q4FY24 performance a few days back.  The revenue at ₹403.7 Crore grew 20% year-on-year. The Earnings before interest tax depreciation and amortisation (Ebitda) at ₹76 Crore grew 22.6% year on year with margins at 18.8% better than 18.4% in the previous quarter and 18.7% in the year ago quarter ). The reported net profit at ₹46.9 Crore grew 29.6% year-on year.

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Analysts at ICICI Securities said that "We believe input price deflation and better revenue mix may have led to gross margin expansion. The Ebitda margins that improved 40 bps sequentially, at 18.8% were the highest since December'2022 quarter.  

The analysts said that all the operating segments (except paper stationary) have registered strong revenue growth YoY, particularly art material and office supplies. ICICI analysts  believe strong all-round performance augurs well  as the company is gaining market shares in most segments.

Expansions and Acquisitions to fuel growth - 

To cater to rising demand the company highlighted that the Capex of ₹126 crore the expansion of manufacturing facility is underway. DOMS is steadily expanding its manufacturing capacity, focusing on expanding its writing instrument segment and likely to commission additional 100,000 square feet capacity by June 2024. Additionally, it is expanding capacities for core pencil segment which may commission before FY25-end.

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DOMS Industries also has made acquisition of 51% stake in SKIDO Industries to fortify its presence in the back-to-school market, planning to expand in school bags, pouches and other such related items

Analysts at ICICI Securities  remain positive on DOMS due to established competitive advantages of strong distribution and manufacturing capabilities, high brand recall value and strategic partnership with FILA. They expect capacity addition and entry into allied business streams to result in strong growth in FY25-FY26

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions