DOMS Industries – A leading supplier of stationery and art products launched its initial public offering (IPO) on December 13, 2023. Financial experts, brokerage, and business firms are of the viewpoint that investing in DOMS is going to be a golden opportunity this coming year.
Founded in 1976, DOMS Industries has established itself as a key player specializing in designing, developing, manufacturing, and selling a diverse range of writing implements and art merchandise under its flagship brand, DOMS. With a significant market share of 29% in pencils and 30% in mathematical instrument boxes for the fiscal year 2022-23, DOMS Industries has demonstrated a strong presence in the market.
The IPO, scheduled to close on December 15, comprises a fresh share sale of Rs 350 crore and an offer for sale (OFS) of up to Rs 850 crore by its promoters. The price band for the issue is set at Rs 750-790 per share, with a lot size of 18 equity shares and multiples thereafter. The company aims to raise a total of Rs 1,200 crore from the IPO.
For the period ending September 30, 2023, DOMS Industries reported a net profit of Rs 73.91 crore and revenue of Rs 764.22 crore. In the fiscal year ending March 31, 2023, the company achieved a net profit of Rs 102.87 crore and revenue of Rs 1,216.52 crore. This robust financial performance has garnered attention from both institutional and retail investors.
As of March 31, 2023, DOMS Industries has a global presence in over 40 countries, with a well-established multi-channel distribution network across the Americas, Africa, Asia Pacific, Europe, and the Middle East. The company’s exclusive distribution and marketing tie-up with select entities of the FILA Group in South Asia further strengthens its market position.
Various brokerage firms have shared valuable insights for the coming year:
Reliance Securities: Recommends subscribing, citing DOMS’s wide product range, strategic partnerships, and experienced promoters.
SBICap Securities: Advises contributing for the long term, highlighting the company’s robust growth potential and better return ratios compared to peers.
KR Choksey Research: Suggests a pitch-in, justifying the premium by acknowledging the company’s market share, distribution network, and revenue growth.
Choice Broking: Endorses investing with caution due to the higher valuation, acknowledging DOMS as the second-largest player in the domestic stationery market.
Geojit Financial Services: Assigns a short-term ‘subscribe’ rating based on the company’s strong brand recall, wide product range, and growth prospects.
Mehta Equities: Shares their insights as investing in DOMS for listing gains, emphasizing the company’s commitment to quality and innovation.
Ventura Securities: Acknowledges DOMS’s success in R&D, product engineering, and multi-channel distribution.
Sushil Finance: Advises giving a kick-in for the long term, considering the company’s rapid growth, expansion plans, and market potential.
With a strong brand, innovative product range, and a global distribution network, DOMS Industries is poised for further expansion. In the dynamic world of IPOs, DOMS Industries emerges as a potential investment avenue, combining industry expertise with global reach and a commitment to quality.