Shares of DOMS Industries rallied over 10 percent to hit an all-time high of Rs 2,035 per share on May 28 after the stationary company reported an upbeat January-March quarter (Q4FY24) performance. With today's upsurge, the stock is up over 150 percent of its issue price of Rs 790 apiece.
DOMS Industries revenue rose 20 percent year-on-year (YoY) to Rs 403 crore in Q4FY24, while earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 22 percent YoY to Rs 76 crore.
Follow our live blog for all the market action
The company's net profit grew 29 percent YoY to Rs 47 crore in the March-ended quarter and margins expanded by 40 basis points (bps) to 18.8 percent.
DOMS Industries is one of the stationery and art products player in India with 12 percent market share in FY23. The company has most of its differentiated products like pencil extender, hexagon shaped eraser and triangular shaped pencils. These products have helped the company to steadily gain market shares.
Analysts at JM Financial shared a 'buy' rating for DOMS Industries post their Q4 results with a target price of Rs 2,000 per share.
ALSO READ: BNP Paribas initiates 'outperform' rating on Doms Industries, sets target price at Rs 1,950
"We estimate 23.6 percent/25.5 percent sales/PAT CAGR over FY24-26E. Given the superior growth trajectory & healthy return on invested capital, we expect the stock to trade at a premium multiple. We remain optimistic on the company’s ability to gain market share by focusing on innovations and leveraging end-to-end manufacturing capabilities," the brokerage firm said.
ICICI Securities also maintained a 'buy' rating on DOMS Industries and shared a target price of Rs 2,100 per share.
"We remain positive on DOMS due to established competitive advantages of strong distribution and manufacturing capabilities, high brand recall value and strategic partnership with FILA. We expect capacity addition and entry into allied business streams to result in strong growth in FY25-FY26E," the brokerage firm added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
