DOMS Industries (DOMS)

FairStock Score: 70/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• 5-year revenue CAGR of 36.55% and latest sales growth of 23.43% show strong demand
• ROE of 22.13%, ROCE of 26.18%, and debt/equity of 0.15 indicate excellent capital efficiency and low leverage
• Piotroski F-Score of 8/9 and Altman Z-Score of 8.60 reflect very solid financial health
• Promoter holding of 70.38% aligns management interests with minority shareholders
• Latest quarter sales of ₹592 Cr and net profit of ₹61 Cr demonstrate healthy operating scale

Concerns

• P/E of 63.78 and EV/EBITDA of 26.90 leave no room for error at the current price
• Profit growth of 11.46% is well below sales growth of 23.43%, indicating margin pressure
• Free cash flow of ₹43 Cr is exceptionally low versus a market cap of ₹14,153 Cr
• DCF intrinsic value of ₹179.72 is far below the current market price, while dividend yield is a negligible 0.14%

AI Analysis

DOMS has the financial profile of a quality compounder: return on equity of 22.13%, return on capital of 26.18%, negligible debt at 0.15 times equity, and promoter holding of 70.38%. The Piotroski score of 8, Altman Z-score of 8.60, and a FairStock score of 70 confirm a healthy balance sheet. Five-year revenue CAGR of 36.55% and latest sales growth of 23.43% show the brand is winning in a competitive stationery market. But at ₹2,385.85, I am being asked to pay 63.78 times earnings and 14.44 times book value. That is not a Graham-style price. Latest quarter net profit of ₹61 Cr on sales of ₹592 Cr gives a margin of about 10.3%, yet profit growth of 11.46% lags sales growth significantly. Free cash flow of ₹43 Cr is tiny relative to a market cap of ₹14,153 Cr, so reported earnings are not fully converting into cash. The DCF value of ₹179.72 sits far below the price, and while the Graham Number of ₹3,146.03 offers one form of cushion, I have learned not to ignore valuation when there is no margin of safety. The 0.14% dividend yield gives me nothing while I wait, and the PEG ratio of 0.04 looks inconsistent with the actual profit growth shown. This is a wonderful business, but the price makes it a poor investment today. I would need sales growth to persist, margins to expand, and cash conversion to improve before buying. For now, DOMS goes on my watchlist, not my buy list.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer