Broker’s call: DOMS Industries (Outperform)

Target: ₹1,950

Target: ₹1,950

CMP: ₹1,752.20

DOMS is a leading school stationery and art materials company in India. The company has doubled its sales over FY16-19 and again over FY19-23. Despite negligible advertisement spends, its products are popular with children. The company’s strength has been innovation and end-to-end manufacturing, due to which it is able to offer greater value to consumers, while having attractive margins and ROE.

We see growth opportunities in its existing and new categories. We initiate coverage on DOMS with an Outperform rating.

Well-placed to benefit from increasing spends on children’s education.

We like DOMS for its: strong organic revenue growth of 21 per cent during FY18-23, well ahead of stationery and FMCG peers; strong brand awareness amongst children, which can be leveraged to drive sales of new products; minimal spend on advertisements and zero credit to stockists, which indicates strong demand for its products; local promoters with a strong understanding of the Indian stationery market and a foreign promoter (F.I.L.A.) that has 100+ years multi-country experience in the industry; strong balance sheet with cash, which the company is looking to deploy in greenfield expansion; new areas of growth including the Pen category as well as small acquisitions in the toys and school bags space; and management’s strong focus on margins and return ratios; and positive feedback from distributor and retailer visits as well as DOMS’ factory visit.

Like (0)
Previous April 19, 2024 5:00 pm
Next April 19, 2024 5:00 pm

Related posts

  • Godrej Properties sells housing units worth over ₹2,000 crore in Noida, shares down on BSE

    Godrej Properties Ltd has announced the sale of approximately 650 housing units worth over ₹2,000 crore in its newly launched project, Godrej Jardinia, located in Sector 146, Noida. The company said the launch in May 2024 was its most successful launch in Noida in terms of sales value.

    free stock signals May 23, 2024
  • Asian shares steady but Fed disappointment hits bonds

    By Stella Qiu SYDNEY (Reuters) –Asian shares steadied from a recent sell-off on Wednesday although investors remain wary after the world’s most powerful central banker had a change of heart on U.S. rate cuts this year, pushing Treasury yields to new five-month highs. Europe is set for a subdued open, with EUROSTOXX 50 futures flat on the day. U.S. stock futures slipped 0.1% after Wall Street finished the day lower. The dollar’s surprising resilience this year is causing discomfort in Asia’s currency markets. The beleaguered yen is plumbing fresh 34-year lows on an almost daily basis, the Chinese yuan is pinned near five-month troughs and Vietnam’s dong is at record lows. The New Zealand dollar gained 0.4% to $0.5902 after first-quarter inflation data showed domestically driven price pressures were surprisingly strong, adding to signs that the last mile to get inflation back to target could be bumpy. On Wednesday, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1%, after plunging more than 4% in the past three sessions. Japan’s Nikkei, however, dropped 0.8% to the lowest in two months….

    free stock signals April 16, 2024
  • Didi: Taxi-hailing demand will increase by 35% during the May Day holiday and drivers will be rewarded with over 300 million yuan

    Sina Technology News On the afternoon of April 25, during this year’s May Day holiday, Didi predicts that taxi demand will increase by about 35% compared with before the holiday, and taxi demand in third- to fifth-tier cities will increase by 50%. In order to pay tribute to the hard work of the driver masters, Didi will distribute more than 300 million yuan in driver rewards. Didi Chuxing predicts that on May Day this year, taxi demand is expected to increase by approximately 35% compared to before the holiday, with demand for long-distance travel experiencing a prominent increase. Demand for taxis over 100 kilometers is expected to increase by 55%. Driven by multiple off-site trips such as traveling and returning home, going to large transportation hubs such as airports and train stations will become the highest rising demand for cars during the May Day holiday, followed by taxi demand for leisure and entertainment. During the May Day period, the demand for taxi hailing in third- to fifth-tier cities increased most significantly, with an expected increase of about 50%. Weihai, Zibo,…

    free stock signals April 25, 2024
  • JP Morgan says India is expected to be included in bond index in June, most clients are ready

    The global head of index research at JPMorgan Chase said that India is expected to be included in the JPMorgan Emerging Markets Bond Index from June, and most clients are ready to trade.

    free stock signals May 10, 2024
  • Capacit’e Infraprojects bags new projects; stock rises

    Capacit’e Infraprojects Ltd has secured work orders worth ₹549 crore.

    free stock signals April 19, 2024
  • Age Calculator

    An age calculator is an invaluable online tool that accurately determines a person’s age based on their date of birth and the current date. By taking into account leap years and different calendar systems, this tool delivers precise results in years, months, and days

    free stock signals April 19, 2024