DOMS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: DOMS Industries Ltd (DOMS) Fundamental Rating: 4.1

🧾 Core Financial Performance

Profit Metrics

EPS: ₹33.3 ➜ strong for its sector

PAT Qtr: ₹48.4 Cr vs ₹50.7 Cr ➜ slight dip; manageable given consistent margins

Return Ratios

ROE: 22.3% | ROCE: 26.2% ➜ excellent capital efficiency

Debt Profile

Debt-to-equity: 0.21 ➜ comfortably low leverage — healthy balance sheet

Dividend

0.11% ➜ minimal yield, growth-focused strategy

💡 Takeaway: Financially solid — strong return ratios with controlled debt. Recent profit variation is marginal.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 71.1 significantly above industry average ➜ rich valuation

P/B Ratio ~14.4 (₹2,370 / ₹165) ➜ reflects premium expectations

PEG Ratio 0.50 indicates reasonable valuation adjusted for growth

📌 Verdict: PEG shows potential upside, but P/E and P/B suggest caution — priced for perfection.

🏭 Business Model & Strategic Position

Sector: Consumer stationery products, school & art supplies

Growth Drivers

Rising educational spend & brand penetration

Innovation in product design and distribution

Moats

Brand equity built over decades

Wide channel reach across Tier 2–4 cities

Risks

Raw material price volatility

Competitive threats from emerging players & imports

📈 Ownership Trends

FII holding ↓ 0.82% ➜ short-term profit booking

DII holding ↑ 0.42% ➜ domestic institutions remain bullish

📉 Technical Indicators

RSI: 45.4 ➜ neutral zone — neither oversold nor overbought

MACD: -28.1 ➜ bearish divergence — suggests weakening momentum

Trading below DMA 50 & 200 ➜ short-term downtrend intact

✅ Suggested Entry Zone: ₹2,200–₹2,280 🔍 Wait for reversal signals or RSI dip closer to 35–38 for better positioning.

📅 Long-Term Investment Guidance

🧠 Ideal for

Investors targeting growth in branded consumer essentials

Exposure to education-driven demand cycles

📍 Keep tabs on

Expansion into global markets

Cost control in manufacturing

Seasonal demand trends & school cycle impacts

If you’d like to see how DOMS compares with peers like Navneet Education or Flair Writing, I can set up a quick side-by-side view. Just say the word.

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