DOMS Industries shares jump to all-time high after robust Q1 performance

Shares of DOMS Industries jumped over 4 percent to a record high of ₹2,545 on August 13, driven by strong results for the April-June quarter (Q1FY25). Since its IPO seven months ago, the stock has surged more than 200 percent, more than tripling from its initial price of ₹790 per share.

The stock has increased by 83 per cent over the past 12 months and by 94% year-to-date. The total trading volume for the day is currently 3.1 times the 30-day average, with the relative strength index at 62.

The stationery company reported a 49.5 per cent year-on-year increase in net profit, reaching ₹54.3 crore in Q1FY25, up from ₹36.3 crore in the same period last year. Consolidated revenue from operations grew by 17.3 per cent year-on-year to ₹445 crore in Q1FY25.

This growth resulted in a 17.3 percent year-on-year rise in EBITDA, totaling ₹445 crore for the quarter ending in June. Margins also saw a significant increase, expanding by 300 basis points to 19.4 percent.

DOMS Industries Q1 results

In the first quarter, scholastic stationery remained the company's top product category, accounting for 43 percent of revenue, followed by scholastic art materials at 25 percent, and kits and combos at 8 percent.

“The start of financial year 2025 has been promising, despite challenges from extreme weather conditions, particularly in North India during the June quarter. We continue to see strong sales growth and improved margins, reflecting our dedication to delivering exceptional value to our customers,” said Santosh Raveshia, Managing Director of DOMS Industries.

Moreover, the board has sanctioned an investment of up to ₹55 crore to acquire a 51.77 percent stake in Uniclan Healthcare by subscribing to and purchasing up to 71,16,080 equity shares at ₹10 each. The transaction is anticipated to be finalized by September 30, 2024.

In other developments, the company's board has acquired a 51 percent stake in SKIDO Industries, which is currently raising ₹1 crore through a rights issue to meet its working capital and capital expenditure requirements.

DOMS Industries specializes in the manufacturing, marketing, trading, and distribution of school stationery and art materials under the brand names 'DOMS' and 'C3'.