This market leader stock is involved in designing, manufacturing, and distributing stationery and art materials such as pencils, crayons, markers, fine art products, and office supplies worldwide. In this article, we explore how DOMS successfully captured market share from established brands like Nataraj and Apsara through innovation and strategic growth.
Stock Price Movement:
With a market capitalization of Rs. 16,944.79 crore, the shares of Doms Industries Limited closed at Rs. 2,792.15 per equity share, down nearly around 0.46 percent from its previous day’s close price of Rs. 2,805.
Company Overview:
DOMS Industries Limited was founded in 2006 and is a leading Indian stationery and art products company. It designs, manufactures, and sells products like pencils, crayons, markers, and fine art materials under its flagship brand “DOMS.”
The company operates globally across more than 45 countries and holds significant market shares of 29 percent and 30 percent in core products like pencils and mathematical instrument boxes, respectively.
What is the news?
DOMS Industries captured market share from brands like Nataraj and Apsara by focusing on superior product quality, innovative designs, and a wide product range. Its strong manufacturing capabilities, strategic partnership with Italy’s FILA Group, and extensive distribution network helped expand its reach. By addressing gaps in competitors’ offerings and introducing value-added products, DOMS built a strong brand presence, achieving nearly 30 percent market share in core categories like pencils and instrument boxes.
Management Guidance:
The company expects its EBITDA margins to stay between 16-17 percent. For Uniclan, a specific part of the business, margins are projected to stabilize at around 7- 8 percent in the long term.
Additionally, the company aims for overall revenue growth of 23-25 percent for the full financial year 2025, showing strong growth expectations across its operations.
Future Capacity Expansion:
The company is expanding its capacity in areas like school stationery, paper products, and craft supplies. For FY25, it plans to spend Rs. 160-175 crore on this growth. In FY26, the investment is expected to increase to Rs. 200-225 crore, focusing on new project developments.
The company has installed a third diaper production line, increasing baby diaper capacity from 400 million to 650 million units. Additionally, a 1 MW solar plant has been commissioned at the Umargam facility in Gujarat.
Capex plans:
The company invested over Rs. 100 crores in capital expenditure during the past nine months, mainly for building construction, purchasing plant machinery, and installing a solar plant. Additionally, Uniclan spent around Rs. 11.5 crores to install an extra diaper manufacturing line to expand its production capacity.
New Product Launches:
The company is introducing new products under its DOMS brand, including bags and toys like finger paints and beeswax crayons, aimed at toddlers.
Product Developments:
The company has installed a new diaper machine, boosting its production capacity to approximately 65 crore diapers. They expect to utilize 80-85 percent of this capacity. Additionally, the company is launching “DOMS Wowper” diapers in collaboration with Uniclan and is actively working on establishing a distribution network for these products.
Recent quarter results:
Doms Industries Limited’s revenue has increased from Rs. 372 crore in Q3 FY24 to Rs. 501 crore in Q3 FY25, which has grown by 34.68 percent. The net profit has also grown by 38.46 percent from Rs. 39 crore in Q3 FY24 to Rs. 54 crore in Q3 FY25.
Written By – Nikhil Naik
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