This textile stock is engaged in manufacturing and selling hosiery products, including knitted innerwear, casual wear, and thermal wear, in focus after AnandRathi gave a target price of Rs. 523, which has an upside potential of 34 percent.
Stock Price Movement:
With a market capitalization of Rs. 2,217.60 crores, the shares of Dollar Industries Limited were currently trading at Rs. 389.15 per equity share, down nearly around 2.11 percent from its previous day’s close price of Rs. 401.
What is the news?
AnandRathi has given a “buy” rating to Dollar Industries Limited, with a target price of Rs 523. This target price reflects a 34.40 percent potential upside from the current price of Rs. 389.15 per equity share.
Target Rational:
The company’s revenue from the South region contributed approximately 8 percent of its total sales in 9M FY25, and it aims to grow this share to 13-15 percent over the next 2-3 years. Dollar Industries also plans to increase its Exclusive Brand Outlets (EBOs) from 17 to around 125 by FY26.
Additionally, the company is focusing on improving cash flow and working capital efficiency through its Lakshya expansion, which has reduced the receivables cycle by 25-30 days in the medium term.
Management Guidance:
The management has increased its guidance for FY25, expecting revenue growth of 12-13 percent and an EBITDA margin of 11 percent. Looking ahead, the company is targeting Rs. 2,000 crore in revenue by FY26, driven by expansion in key regions, premiumization, and stronger sales penetration through initiatives like Lakshya.
Business Operation:
Dollar Industries Limited stands as a major player in India’s hosiery market with a 15 percent market share. The company produces 250 million garment pieces through its 4 manufacturing units. Their product portfolio spans over 2000 items across various segments.
Additionally, the company maintains a strong distribution network with more than 1500 pan-India dealers and over 900 large-format stores. Dollar Industries has expanded internationally, operating in 15 countries through export channels.
Recent quarter results:
Dollar Industries Limited’s revenue has increased from Rs. 330 crore in Q3 FY24 to Rs. 378 crore in Q3 FY25, which has grown by 14.55 percent. The net profit has also grown by 5.56 percent from Rs. 18 crore in Q3 FY24 to Rs. 19 crore in Q3 FY25.
Dollar Industries Limited’s revenue and net profit have grown at a CAGR of 12.50 percent and 10.82 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 13.9 percent and 11.8 percent, respectively. Dollar Industries Limited has an earnings per share (EPS) of Rs. 16.1, and its debt-to-equity ratio is 0.42x.
Written By – Nikhil Naik
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