DOMS Industries shares surged over 5 per cent on Monday to hit a record high of Rs 2,367.50 per share on the BSE after brokerage Axis Securities initiated trading of the stock with a bullish outlook. This marked the seventh consecutive day of gains for DOMS Industries shares, with the stock rising over 10 per cent in the last one week.
Axis Securities has assigned a ‘buy’ rating to DOMS Industries shares with a target price of Rs 2,670 per share, which would represent an 18% upside from Friday’s closing price.
“Our confidence in DOMS’s future prospects is based on the company’s strong and consistent performance over the past few quarters,” Axis Securities said in a report.
The company expects this trend to continue over the next few years, supported by factors such as a) continued distribution expansion in under-penetrated smaller towns and eastern/southern markets, and b) continued focus on new product development, capacity expansion and entry into the large pen category to expand its product portfolio beyond the small pencil segment.
The company added that its entry into the fast-growing bags and toys segments will further accelerate its growth.
The brokerage expects DOMS Industries to achieve healthy revenue, EBITDA and net profit growth at CAGRs of 25%, 26% and 28%, respectively, from FY2024 to FY2027. This growth trajectory is expected to help the company’s ROCE rise from 22% in FY2024 to 25% in FY2027.
Axis Securities believes DOMS Industries shares are attractive within the mid-cap market given improving earnings growth prospects and an enhanced return profile.
DOMS Industries shares made a spectacular debut in the stock market in December 2023 after its initial public offering (IPO) received strong demand from investors. DOMS Industries shares were listed at Rs 1,400 per share, a 77.2% premium over the issue price of Rs 790.
DOMS Industries’ share price has seen strong growth since its listing, up more than 69% from its listing price and nearly 200% from its issue price.
As of 10.50 am, DOMS Industries share price was trading 2.58 per cent up at Rs 2,312.10 per share on the BSE.
Disclaimer: The views and recommendations expressed above are those of the individual analysts or brokerage firms and not that of Mint. We recommend checking with a certified professional before making any investment decisions.
