Latest Grey Market Premium for DOMS Industries IPO & 7 Point

Pavan 13th Dec 2023

DOMS Industries IPO is positioned for growth, leveraging market positioning and a diversified product lineup. The latest grey market premium Price of DOMS IPO is already rising day by day and it’s currently at Rs.490 that will sumup Rs.490 + Rs.790 = Rs.1280. So if you looking for listing gains then it’s look like better play and more updates will come soon on premium price so watch the last section of the post.

1) DOMS Industries IPO Details

• DOMS Industries is set to launch its Initial Public Offering (IPO) from December 13 to December 15, 2023.
• Market observers have noted significant interest in DOMS shares, with the Grey Market Premium (GMP) currently at ₹482, reflecting a ₹12 increase from its previous GMP of ₹470.
• The IPO price for DOMS shares has been set in the range of ₹750 to ₹790 per equity share.

2) Background DOMS Industries:

Founded in 2006, DOMS Industries has established itself as a prominent manufacturer of stationery and art-related products in India. The company offers over 3,800 items, specializing in pencils and mathematical instrument boxes.

3) Financial Insights:

• DOMS recorded substantial market shares of 29% and 30% in core products during FY23, with a remarkable surge in net profit by 567.2% to Rs 95.8 crore and revenue from operations by 77.3% to Rs 1,212 crore.
• In the shorter period leading up to September FY24, DOMS achieved a net profit of Rs 70.63 crore on revenue totalling Rs 761.8 crore, showcasing consistent growth.

4) Evaluation of Strengths and Weaknesses:

• DOMS Industries enjoys a dominant position in the Indian stationery and art material industry, with market shares across various product segments.
• Concerns arise regarding revenue concentration, notably in wooden pencils, and the dependency on FILA for operations and R&D.

5) Assessment of Growth Metrics:

• DOMS demonstrates stability and growth potential with an average return on equity (ROE) of 14% and a return on capital employed (ROCE) of 15% over the past three years.
• The company witnessed an annual revenue growth rate of 23% and a net profit growth rate of 42% over the same period.

6) Market Positioning and Concerns:

• DOMS’s IPO valuation stands at a price-to-earnings (P/E) ratio of 50.0 and a price-to-book (P/B) ratio of 6.2 times, presenting a premium compared to industry peers.
• The company’s growth outlook remains promising, driven by anticipated government initiatives in education, although the competitive intensity and reliance on FILA pose potential risks.

7) Future Prospects and Conclusion:

DOMS Industries IPO is positioned for growth, leveraging market positioning and a diversified product lineup, while diversification strategies beyond specific product segments may mitigate risks and ensure long-term sustainability.

Conclusion for DOMS Industries IPO, Industries displays notable growth potential and market presence. Prospective investors eyeing the IPO should consider the company’s strengths, weaknesses, and broader market dynamics before making informed investment decisions.

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