NSE: DOMS · BSE: 544045 · ISIN INE321T01012
DOMS Industries Limited stock analysis
DOMS Industries Limited ranks #444 in the TickerSutra evidence-ranked universe with a score of 64/100 and 89% data confidence. The latest captured fundamentals show ROCE of 24.3%, quarterly sales growth of 19.3% and quarterly profit growth of -22.3%.Monitor only
INVESTMENT EVIDENCE
What supports—and challenges—the thesis
Evidence in favour
- ROCE is 24.3%
- Low debt/equity of 0.12×
- 24.3% three-year sales CAGR
- Institutional ownership is rising
- CWIP indicates an active capacity pipeline
- No promoter shares are reported as pledged
Risks and constraints
- Valuation is above 40× earnings
Still unresolved: Related-party exposure · Broad media sentiment
FINANCIAL TRAJECTORY
Recent operating history
| Period | Revenue | Operating profit | Net profit | Operating margin |
|---|---|---|---|---|
| 2022 | ₹684cr | ₹70cr | ₹17cr | 10.0% |
| 2023 | ₹1,212cr | ₹187cr | ₹103cr | 15.0% |
| 2024 | ₹1,537cr | ₹273cr | ₹160cr | 18.0% |
| 2025 | ₹1,913cr | ₹349cr | ₹214cr | 18.0% |
| 2026 | ₹2,326cr | ₹403cr | ₹240cr | 17.0% |
| TTM | ₹2,435cr | ₹386cr | ₹226cr | 16.0% |
EXCHANGE EVENT TRIGGERS
Latest corporate disclosures
MANAGEMENT COMMENTARY
Signals from filed documents
So Q1 is always a slower quarter for the diaper business because it's sunny days, there's heat all around India. So fixed cost absorption is a little less during that quarter. DOMS Industries Limited August 04, 2026 Page 9 of 13 But with the season pickup happening from the second quarter, the fixed cost absorption should be slightly better, which might offset some amount of increase in the consumption margins.
So those were the key reasons why export was flattish. But with the new capacity, especially in the pencil segment, which is coming up, we believe that going forward -- pencils is a product which we export close to about 25% to 30% of our wood pencil sales comes through export. With the new volumes that are expected to come up, export sales is expected to grow.
Even if you look at the last year's number, we were close to about plus of 2.7x and very close to our targeted range of 3x . So once the production facility is set up and starts commercial production, it takes us about 18 months to 24 months to reach the full optimal level, which is about 3x on the rupee that is invested. And your second question with respect to this 300,000 square feet of space which is coming up, s
So, if you could just highlight what was the reason for that? Rahul Shah: So, export growth was more flattish in Q1 FY 27, one, due to demand so ftness amid persistent inflation and subdued consumer sentiment in certain EU economies. Further, it was also affected by the West Asia disruptions leading to longer tr ansit times, higher frei ght cost and shipment deferrals.
And once we come to know the new base, then in order to reach our earlier margins, if there are any further price increases to be taken, we will be taking that. But right now, owing to the abrupt fluctuation in raw material prices, visibility on margin guidance continues to be limited. I think structurally, there is nothing that is deteriorated.
Operating revenues for the quarter grew by 19.2% to INR670 crores, in line with our annual guided range, highlighting our sustained growth trajectory. EBITDA for Q1 FY27 were down by 16.4% to INR82.6 crores with EBITDA margin at 12.3% in Q1 FY27 as co mpared to 17.6% in Q1 FY26, primarily on account of fall in gross margins by nearly 400 ba sis points due to sharp raw material inflation linked to the West Asia crisis
Jinesh Joshi: Sir, in the opening comments, you mentioned that our focus is on volume-led growth. But sir, given the ticket size of our products and our market leadership position, why are we hesitant to maybe take a slightly higher price hike to compensate for the RM inflation? I mean, do you think that this can lead to any kind of down trading?
We were able to maintain our growth momentum in Q1 FY27 despite a difficult external environment, including a sharp increase and continued volatility in raw material prices. This was driven by robust domestic demand, leading to volume growth supported by a strong back-to- school season, coupled with marginal increase in ASPs on account of calibrated price increase to partially offset the significant increase in volat
Now if I'm not mistaken, we have just bought the pen business and have chosen not to buy the OEM nib business of theirs. So just wanted to understand the rationale for not buyi ng the nib business because that would have provided an immediate backward integration advantage to us given the fact that we do not have the nib manufacturing capability. And also from their perspective, if we are selling the pens business, b
So that is the only, I would say, challenges in terms of capacity. But like I said, with some new capacities coming for pencils, new capacities coming for some innovative differentiated products, export, at least in the near term, will gain slightly better momentum than it has done in the past. Moderator: The next question is from the li ne of Percy from IIFL Capital.
MANAGEMENT PROMISE LEDGER
Quantified statements on the clock
“As we look ahead, our guidance for 18%, 20% cons olidated sales growth is further reinforced by the positive demand undercurrent in the domes tic market. However, visibility on margin guidance remains limited owing to abrupt fluctu ation in raw material prices. And with this, I would now request to open the floor for question and answers.”
“Even if you look at the last year's number, we were close to about plus of 2.7x and very close to our targeted range of 3x . So once the production facility is set up and starts commercial production, it takes us about 18 months to 24 months to reach the full optimal level, which is about 3x on the rupee that is invested. And your second question with respect to this 300,000 square feet of space which is coming up, s”
HOW TO READ THIS PAGE
Evidence, freshness and limitations
What does the TickerSutra score mean?
The score ranks captured evidence across financial quality, growth, moat and margins, regulatory catalysts, governance, institutional trend and valuation comfort. It is a research-prioritization tool—not a buy recommendation or price target.
Which sources support this page?
Financial history, ownership and pledge data, NSE and BSE filings, annual reports and available earnings-call transcripts are combined here. Use the source trail and original exchange document before relying on a decision-critical fact.
Why can an item be unresolved?
Unresolved means the current captured source window did not provide enough evidence for that check. It does not establish that a risk or relationship is absent.
Maintained by TickerSutra Research · Snapshot updated 29 Sept 2026 · Read the methodology · Read the disclaimer
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