DOMS Industries Limited

Industrials — Business Equipment & Supplies · NSE

₹2,100.50−₹24.30 (−1.14%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

The 60-second version of DOMS Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

DOMS Industries Limited designs, develops, manufactures, and sells stationery and art material products under the DOMS brand name in India and internationally.

IndustryBusiness Equipment & Supplies

SectorIndustrials

Employees13,500

Annual revenue₹2,311 Cr

How does it make money?

Turns over ₹2,311 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 13,500 employees supports ₹17.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹17.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.9% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What is the outlook?

13 analysts covering the stock expect revenue to grow about 19.8% and earnings to grow about 42.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.8%

Est. earnings growth+42.7%

Analysts13

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +91% while net margin moved +26% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+91%

Margin effect+26%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 58.8x is demanding — it needs sustained high growth to justify
✓ P/E is 34% below its own historical median of 89.0x — cheap by its own standards
✗ P/B of 10.45x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

57/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

58.8x

3Y Median

89.0x

36 monthly readings · mean 87.6x · range 55.6x–149.8x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 34% below its 3y median of 89.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 34% below the peer median of 88.8x.

vs. its own history

Cheap

89.0x median over 36 months · -34%

vs. sector peers

Cheap

88.8x median of 3 peers · -34%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

30.6x

PEG

1.73

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 15.7% to 18.1% over 3 years.
High return on capital employed
ROCE of 23.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 28.4% to 18.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 36.5% to 23.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 359% against revenue up 91% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹38 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 15.7% to 18.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 34% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 34% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 359% against revenue up 91%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 28.4% to 18.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 18% a year✓ 24.2% CAGR
Latest reported year was 19.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹38 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹12,748 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

58.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.45x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹35.71

Profitable

Profitable on a per-share basis

ROE

18.9%

Strong

Strong capital efficiency

ROCE

23.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

19.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-22.5%

Falling

Profits are shrinking

Dividend Yield

0.17%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

41.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.8%

Average

Average margins

Net Margin

8.9%

Average

Average bottom-line conversion

Current Ratio

2.17

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.26

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2086.5 / 2155.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,208 Cr	₹1,531 Cr	₹1,903 Cr	₹2,311 Cr	+24.2%
EBITDA	₹190 Cr	₹282 Cr	₹371 Cr	₹419 Cr	+30.2%
EBITDA Margin	15.7%	18.4%	19.5%	18.1%	—
PAT (Net Profit)	₹96 Cr	₹153 Cr	₹202 Cr	₹230 Cr	+33.9%
EPS	₹15.79	₹26.62	₹33.31	₹37.79	+33.8%
ROE	28.4%	18.8%	20.2%	18.9%	—
ROCE	36.5%	23.5%	23.8%	23.4%	—
Total Debt	₹140 Cr	₹172 Cr	₹212 Cr	₹141 Cr	+0.3%
Free Cash Flow	₹37 Cr	₹29 Cr	-₹30 Cr	-₹38 Cr	—

🟢 Revenue has grown at 24.2% a year over 3 years.

🟢 EBITDA has grown at 30.2% a year over 3 years.

🟢 EBITDA Margin has risen from 15.7% to 18.1% over 3 years (+2.4 pts).

🟢 PAT (Net Profit) has grown at 33.9% a year over 3 years.

🟢 EPS has grown at 33.8% a year over 3 years.

🔴 ROE has fallen from 28.4% to 18.9% over 3 years (-9.5 pts).

🔴 ROCE has fallen from 36.5% to 23.4% over 3 years (-13.1 pts).

🟡 Total Debt has been broadly flat over 3 years (0.3% a year).

🔴 Free Cash Flow has turned negative, from ₹37 Cr to -₹38 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,712 Cr

Total Liabilities

₹410 Cr

Cash & Equivalents

₹53 Cr

Operating Cash Flow

₹254 Cr

Capex

-₹293 Cr

Shareholding (proxy)

Institutional Holding

29.1%

Insider Holding

63.4%

Corporate Actions

Dividend Rate

₹3.65

Ex-Dividend Date

27 Aug 2026

Analyst Consensus

Recommendations

12 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹2,648.54

+26.1% vs CMP

Target Range

₹2,231 – ₹3,042

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed3 negative1 general

DOMS Industries shares plunge up to 5% amid reports of ₹1,000 crore block deal; details here

Upstox, 16 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Buzzing Stocks: DOMS Industries falls as FILA plans 7% stake sale; SEBI relief lifts Prime Focus shares

Moneycontrol.com, 17 JunOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Doms Industries Share Price Falls 5% As Q1 Revenue Declines, Net Profit Drops

NDTV Profit, 04 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

DOMS Share Price News: Near 52-Week Low and Sector View

Univest, 28 Sept

DOMS Industries shares fall 4% after Q1 profit drops 23%

BusinessLine, 08 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Here's why DOMS Industries share price surged 14% in trade on March 12

Business Standard, 12 MarPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑