📌 At a Glance
DOMS is not your average pencil-packing, geometry-box-selling FMCG firm. It’s now a ₹14,500 crore beast with 25% ROE and a P/E that says “I’m not stationery, I’m growth.” But is it all graphite and glory — or just overpriced nostalgia?
🖊️ 1. From School Bags to Shareholder Brags
DOMS started in 2006, and by 2023, it had drawn a perfect IPO arc.
- 🎒 India’s #2 stationery player, with:
- ✏️ 29% pencil market share
- 📐 30% share in math instrument boxes (the geometry boxes you used to lose 3 days after buying)
- 🔥 IPO listed at ₹790. Stock today? ₹2,403.
- 🧒 Once in your school kit, now in your mid-cap SIP.
Also: They just acquired 51% of Super Treads (makes erasers & rubber rollers) for ₹6.12 crore. DOMS is going full FMCG Infinity Gauntlet.
📈 2. The Financial Sketchbook
📊 Profit & Loss (₹ Cr)
| Year | Revenue | Net Profit | OPM % | ROE % |
|---|---|---|---|---|
| FY21 | 405 | -4 | 6% | – |
| FY22 | 684 | 17 | 10% | – |
| FY23 | 1,212 | 103 | 15% | 34% |
| FY24 | 1,537 | 160 | 18% | 31% |
| FY25 | 1,913 | 214 | 18% | 22% |
✍️ Compounded Profit Growth (3Y): 142%
🪙 Cash from Ops (FY25): ₹183 Cr
🧱 Capex in FY25: ₹140 Cr
📈 ROCE = 26.2%
This isn’t your basic FMCG — it’s an art supplies Ferrari.
🏆 3. Peer Pressure: DOMS vs The Doodles
| Company | Price (₹) | P/E | ROE (%) | MCap (₹ Cr) |
|---|---|---|---|---|
| DOMS | 2,403 | 72 | 22.3 | 14,575 |
| Flair Writing | 250 | 24 | 12.6 | 2,642 |
| Kokuyo Camlin | 125 | 215 (!) | 3.6 | 1,256 |
| Linc | 126 | 19 | 22.5 | 749 |
DOMS is clearly the Big B of the classroom. But 72x P/E is high… even if you throw in a free sharpener.
💡 4. Why Everyone’s So Bullish
- 🧼 Clean financials, no dodgy accounting.
- 🎯 High-growth FMCG-like play in stationery — a market that’s surprisingly underpenetrated and brand-driven.
- 🏭 Expanding aggressively with backward integration — even buying rubber makers.
- ✈️ Exporting to 40+ countries already. Global pencil domination? Maybe.
🔮 5. Fair Value Range — Time to Do the Math
Assumptions:
- EPS FY25 = ₹33.34
- Sector Fair P/E = 35–45× (adjusted for FMCG-lite nature + growth)
- Fair Value Range = ₹1,167 to ₹1,500
🙃 CMP = ₹2,403
🧨 Overvalued by 60–100% on conventional metrics
This is less about price, more about momentum + scarcity (very low free float due to 75% promoter holding).
🚩 6. Red Flags (Minor But Worth Noting)
- 📕 P/B ratio = 14.5x (most FMCGs don’t dare go here)
- 🪄 Interest cost may be capitalized — check disclosures closely.
- 🚀 Stock has run up 3x in under a year — already pricing in perfection.
- 📦 Inventory days rising to 99 — working capital is stretching.
- 🔮 Priced for 2 years into the future.
If DOMS misses one quarter — the eraser will come out. Fast.
🧠 7. TL;DR: DOMS = Doodles + Profits + Drama
✅ Super brand recall
✅ 40%+ profit CAGR
✅ Global expansion, efficient ops
❌ P/E at 72x
❌ Priced as a unicorn, not a pencil company
If you’re holding, great — sharpen and chill.
If you’re entering now? You’re not buying DOMS…
You’re buying nostalgia at ₹2,400 a piece.
✍️ Written by Prashant | 📅 19 June 2025
Tags: DOMS Industries, pencil stock, IPO multibagger, stationery FMCG, stock analysis, Flair Writing, Kokuyo Camlin, EduInvesting roast, fair value, art supplies stock
