DOMS Industries Stocks: Company's stocks increased three times from IPO price, know why it ran?

News Topical, Digital Desk : Shares of DOMS Industries Limited saw a massive 12% surge on Monday. The shares rose more than three times the company's IPO price. This surge came after the company's June quarter results were better than market expectations.

In the June 2025 quarter, Domes recorded a net profit of ₹57.3 crore, up 10.5% from ₹51.8 crore in the same quarter last year. Revenue also increased to ₹562 crore, showing a growth of 26.4% over last year.

Talking about the company's EBITDA, it stood at ₹98.3 crore, up 13.8% from ₹86.4 crore last year. The EBITDA margin was recorded at 17.5%, slightly lower than last year's 19.4%. If we understand the earnings figures, the company's performance has been better than the previous quarter. Mainly the stationery business has increased by about 18%. It was 14% in the fourth quarter of the last financial year. The sale of the recently acquired Uniklan business is also contributing to this jump. 

How much income from where? In the company's core business, combined gross sales from Scholastic stationery, Scholastic art materials, and kits and combos, which account for approximately 64% of total sales, grew by 6.4%. The stationery segment grew on the higher side of double digits due to strong demand in pens, paper stationery, and hobby and craft products, which JM Financial cited as a key positive. Uniclan's performance was in line with expectations, led by capacity growth and expansion of channel partner network. On the operating front, the base business margin was around 18.3% while Uniclan's margin was around 6.8%. Looking ahead, the company management is projecting consolidated sales growth of 18-20%, EBITDA margin of 16.5-17.5% and net profit margin of around 10% for the year 2026. This also takes into account the annual amortization cost of around ₹4.5 crore associated with the Uniclan acquisition. JM Financial said it has unwavering confidence in DOMS' ability to perform and its strategy to expand into new product sectors such as toys, bags and baby care. The speed of setup of new pencil manufacturing capacity, expansion in paper stationery and development of Uniclan's distribution network will be key points to monitor in the medium term. JM Financial, however, has slightly cut its estimates due to some minor discounts and lower margins but has retained a 'buy' rating and a price target of ₹2,845 on the stock. ICICI Securities, on the other hand, has an 'add' rating but raised the price target to ₹2,550 from ₹2,675 earlier. DOMS Industries is planning to achieve 18-20% compound annual growth for 2026.

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