DOMS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials

Earnings Growth: PAT rose from ₹46.1 Cr to ₹55.5 Cr, a 12.8% QoQ increase, showing healthy momentum.

Return Metrics: ROCE at 26.0% and ROE at 21.7% are excellent, indicating strong capital efficiency and profitability.

Debt Profile: Debt-to-equity of 0.17 — low leverage, which supports financial resilience.

Cash Flow: While not explicitly stated, strong margins and low debt imply robust operating cash flows.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 80.5 Highly overvalued vs. industry PE (30.0)

P/B Ratio ~16.4 Very high premium over book value

PEG Ratio 0.53 Fairly valued relative to growth

Dividend Yield 0.12% Minimal income play

Valuation is rich, but PEG ratio suggests growth may justify the premium.

🖊️ Business Model & Competitive Advantage

DOMS Industries Ltd. is a leading player in the stationery and writing instruments segment. Key strengths include

Strong brand equity in pencils, pens, and school supplies

Expanding product portfolio into art materials and office stationery

Robust distribution network across India and growing export footprint

High-margin business with scalable manufacturing

The company has delivered 19.4% returns over the past year, supported by 19.7% quarterly revenue growth and an 11.1% profit margin

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📈 Technical & Sentiment Indicators

RSI: 57.0 – Neutral zone, suggesting balanced momentum.

MACD: 47.4 – Bullish crossover, indicating short-term strength.

Volume Dip – Below weekly average, signaling reduced interest.

DMA 50 & 200: Price is hovering near both, indicating consolidation.

Broker consensus targets range from ₹2,820 to ₹3,110, implying 8–19% upside

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💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹2,480–₹2,520, near DMA support and below current price.

Current Price ₹2,602: Slightly above ideal entry, but still reasonable for accumulation.

🕰️ Long-Term Holding

Strong Hold or Accumulate on Dips: High ROE/ROCE, brand strength, and growth trajectory make DOMS a compelling long-term play.

Watch Valuation & Institutional Sentiment: FII outflow (−0.82%) suggests short-term caution, while DII inflow (+0.42%) reflects domestic confidence.

You can explore DOMS’s share price targets and technical forecast or review analyst consensus and dividend updates for deeper insights. Let me know if you'd like a peer comparison with Flair Writing or Kokuyo Camlin.

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