Doms Industries has a target price of ₹3,370 with a current market price of ₹2,796.55. In the third quarter of FY25, the company reported strong performance with revenue and PAT beating expectations by 4 and 8 per cent, respectively, driven by a solid showing in the hygiene business. The hygiene business subsidiary, Uniclan Healthcare, generated revenues of ₹50.10 crore with an EBITDA margin of around 10 per cent. With the commencement of production on the third line, the installed capacity has increased to 650 million pieces per annum, which is expected to boost growth in the hygiene business in FY26.
Excluding the hygiene business, revenue saw a 21.4 per cent year-on-year increase with an EBITDA margin of 18.4 per cent, indicating a strong performance in the core stationary business. The company is also on track with its expansion plans in pens and pencils, as well as the development of a 44-acre land parcel at Umbergaon, with the first building expected to be ready by Q3-FY26. With ongoing expansion of the product basket and distribution network, sales and PAT are projected to grow at a CAGR of 27 per cent from FY25 to FY27.
EPS estimates have been marginally increased by 1-4 per cent over FY25-FY27, reflecting the strong performance in Q3-FY25. The recommendation for the stock remains a Buy with a target price of ₹3,370, based on a 60x FY27E EPS multiple. The outlook for Doms Industries remains positive, supported by its strong performance and growth prospects.
