⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DOMS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | DOMS | Market Cap | 14,375 Cr. | Current Price | 2,369 ₹ | High / Low | 3,065 ₹ |
| Stock P/E | 67.9 | Book Value | 174 ₹ | Dividend Yield | 0.13 % | ROCE | 26.0 % |
| ROE | 21.7 % | Face Value | 10.0 ₹ | DMA 50 | 2,498 ₹ | DMA 200 | 2,518 ₹ |
| Chg in FII Hold | -0.12 % | Chg in DII Hold | 0.57 % | PAT Qtr | 54.2 Cr. | PAT Prev Qtr | 55.8 Cr. |
| RSI | 40.4 | MACD | -57.3 | Volume | 20,859 | Avg Vol 1Wk | 48,632 |
| Low price | 2,250 ₹ | High price | 3,065 ₹ | PEG Ratio | 0.45 | Debt to equity | 0.11 |
| 52w Index | 14.6 % | Qtr Profit Var | 16.6 % | EPS | 34.9 ₹ | Industry PE | 28.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT declined slightly from 55.8 Cr. to 54.2 Cr., but YoY profit variation shows +16.6%, indicating steady growth.
- Profit Margins: ROE at 21.7% and ROCE at 26.0% reflect strong efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.11 highlights a low-leverage balance sheet.
- Cash Flows: Dividend yield at 0.13% is minimal, suggesting reinvestment focus over shareholder payouts.
💹 Valuation Indicators
- P/E Ratio: 67.9 vs Industry PE of 28.2, showing significant overvaluation.
- P/B Ratio: Current Price 2,369 ₹ / Book Value 174 ₹ ≈ 13.6, premium valuation.
- PEG Ratio: 0.45, suggesting growth is reasonably priced relative to earnings expansion.
- Intrinsic Value: Estimated fair value around 2,200–2,250 ₹, making current price slightly above fair zone.
🏢 Business Model & Competitive Advantage
- Doms Industries is a leading stationery and writing instruments manufacturer with strong brand recognition in India.
- Competitive advantage lies in brand loyalty, distribution reach, and product diversification.
- Expansion into premium and international markets provides long-term growth opportunities.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 2,200–2,250 ₹, closer to intrinsic value and near support levels.
- Long-Term Holding: Strong fundamentals, low debt, and high ROE/ROCE make it suitable for long-term investors, though valuation is stretched.
✅ Positive
- High ROE (21.7%) and ROCE (26.0%) reflect strong efficiency.
- Low debt-to-equity ratio (0.11) ensures financial stability.
- DII holdings increased (+0.57%), showing domestic institutional support.
⚠️ Limitation
- High P/E ratio compared to industry average, indicating overvaluation.
- Dividend yield at 0.13% is negligible.
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
📉 Company Negative News
- Decline in FII holding (-0.12%) indicates reduced foreign investor confidence.
- Technical indicators (RSI 40.4, MACD -57.3) show bearish sentiment.
📈 Company Positive News
- DII holdings increased (+0.57%), showing domestic support.
- Strong brand presence and consistent profit growth (+16.6% YoY).
🏭 Industry
- Stationery and consumer goods industry PE at 28.2, much lower than DOMS’s 67.9, suggesting relative overvaluation.
- Industry growth supported by rising education demand and premiumization trends.
🔎 Conclusion
- Doms Industries is a fundamentally strong company with high efficiency and low debt.
- Valuation is stretched compared to industry peers, making current levels risky for fresh entry.
- Best suited for long-term investors with cautious entry around 2,200–2,250 ₹; accumulation strategy recommended for exposure to consumer stationery growth.
I can also expand on premiumization and export opportunities in the stationery sector to show how DOMS could sustain growth beyond India.