✅ At a Glance
| 📌 | Key Metrics | Q4 FY25 | FY25 (Full Year) |
|---|---|---|---|
| 🧾 Revenue | ₹509 Cr | ₹1,912.6 Cr | |
| 💰 Net Profit | ₹51.3 Cr | ₹213.5 Cr | |
| 📉 EBITDA Margin | 17.4% | 17.4% | |
| 💸 EPS | ₹7.98 | ₹32.80 | |
| 🏷 CMP | ₹2,797.50 | as on May 19, 2025 | |
| 📊 P/E Ratio | 85.27 | TTM |
DOMS delivered a neat ₹213 Cr profit in FY25, with revenue up 24%. But Q4 margins dipped, and EPS shrank to ₹7.98 — not quite pencil-sharp.
🧵 About DOMS Industries Ltd
DOMS Industries Ltd is not just a pencil brand anymore — it’s a listed corporate machine 🏢, churning out stationery, hygiene products, and multibagger dreams since its IPO in Dec 2023.
FY25 saw the company pushing into the hygiene segment via its Uniclan acquisition. Think pencils + toilet paper. Diversification, but make it scribbly.
👔 Key Managerial People (KMP)
| Name | Designation |
|---|---|
| Mr. Amar Ramesh Rathod | Chairman & MD |
| Mr. Om Santosh Raveshia | Whole-Time Director (Newly appointed) |
| Mr. Akshay Sahani | CFO |
| M/s Price Waterhouse LLP | Auditors (Peer Review Valid till Nov 2026) |
📈 Financials Breakdown
💹 FY25 vs FY24 (Full Year)
| Metric | FY24 | FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹1,537 Cr | ₹1,912 Cr | 24.4% 🔼 |
| Net Profit | ₹159.6 Cr | ₹213.5 Cr | 33.7% 🔼 |
| EBITDA | ₹289 Cr est. | ₹333 Cr | 15.2% 🔼 |
| EBITDA Margin | 18.8% | 17.4% | ❌ Down |
| EPS | ₹24.5 | ₹32.8 | 🔼 |
📆 Q4 FY25 Snapshot
- Revenue: ₹509 Cr (vs ₹404 Cr YoY)
- Net Profit: ₹51.3 Cr (vs ₹47.8 Cr YoY)
- Margin: Flat-ish
- Segment Profit:
- 🖊️ Stationery: ₹72 Cr
- 🧻 Hygiene: ₹1.7 Cr (still baby steps)
💸 IPO Money: Where Did It Go?
| Use Case | Allocated (₹ Cr) | Used | Leftover |
|---|---|---|---|
| Capex (plant) | 280 | 113.8 | 166.2 |
| General Corporate | 51.6 | 51.1 | 0.5 |
| Total | 331.6 | 165 | 166.6 |
₹162 Cr chilling in FDs. DOMS is literally saving like your middle-class dad.
🧮 Forward Value (FV) Estimation
Using your favourite conservative approach with a P/E multiple of 60:
- EPS (TTM) = ₹32.80
- Fair Value = ₹32.80 × 60 = ₹1,968
📉 Latest CMP = ₹2,797.50
➡️ Overvalued by ₹829 (~42%)
Unless DOMS grows margins or topline at rocket speed, current prices seem… optimistic.
🔮 Growth Outlook
- Stationery is stable, but limited.
- Hygiene biz is new and small, but high-margin (if scaled).
- Margin pressure is visible (from 18.8% to 17.4%).
- DOMS needs to either:
- Launch a viral product (color-changing pens?),
- Scale exports like Flair,
- Cut costs before markets start sketching them out.
🧠 EduInvesting Take
“DOMS bana tha IPO ka poster boy — ab lagta hai valuation ka masterstroke bana diya.”
Margins have shrunk, EPS growth is moderate, and the CMP is flying higher than your neighbour’s drone. If you’re already holding, great — enjoy the ride. But new investors? Might wanna sharpen that valuation pencil a bit more. ✏️
🚩 Risks & Red Flags
- 🔻 High P/E vs Industry (~40–50x)
- 🪙 IPO proceeds not fully utilised
- 🧻 Hygiene segment is still sub-₹50 Cr
- 💡 Capex delays = growth lag
- 📦 High working capital cycle in stationery biz
🎯 Final Verdict
DOMS is a quality player with high brand recall — but at nearly 85x earnings, the real question is: “Is it still an investment or just nostalgic sentiment?” Until margins revive or hygiene scales up, this one might just be trading on vibes.
Tags: DOMS Industries, FY25 Results, Pencil Stocks, Multibagger IPO, Fair Value Analysis, IPO Fund Usage, EPS, EBITDA Margin, Stationery Stocks
