Buy DOMS Industries, target price Rs 2,620: Axis Securities
DOMS Industries Ltd. with a target price of Rs 2620. The current market price of DOMS Industries Ltd. is Rs 2274.25 .
DOMS Industries Ltd., incorporated in the year 2006, is a Small Cap company (having a market cap of Rs 13958.06 Crore) operating in Paper sector.
DOMS Industries Ltd. key Products/Revenue Segments include Stationery, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2023.
Rationle
The company has been implementing strategic initiatives over the last couple of years, and these are expected to bear fruit in the coming year.
A few notable initiatives are: 1) Managing entire end-to-end operations, driving operating efficiency while maintaining high-quality standards. The new 44-acre greenfield facility will further boost growth; 2) The company’s continued focus on launching new products and expanding into the larger pens category, as opposed to its earlier presence in the small pencil segment, which will broaden its product portfolio. Additionally, entering the fast-growing bags, toys, and diaper segments will further boost growth; 3) There is significant potential for distribution expansion, with DOMS currently reaching 122,500 outlets. The company has the potential to expand its reach to ~300,000-350,000 outlets, as there is still untapped potential in the east and south markets as well as smaller towns in India; and 4) The strategic partnership with FILA, which enables DOMS to expand its global reach while leveraging FILA’s R&D capabilities, providing a long-term advantage.
