DOMS Industries Ltd - LONG TERM STOCK

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LTP 1450.00

Buy on dips & Hold for Long


Overview
DOMS Industries Limited, as we know it today, traces its lineage back to over 4 decades, with the formation of a partnership firm, ‘R.R. Industries’ by our founders, Late Shri Rasiklal Amritlal Raveshia and Late Shri Mansukhlal Jamnadas Rajani, which over the years undertook the business of manufacturing and sale of scholastic stationery; scholastic art material; paper stationery; kits and combos; office supplies; hobby and craft; and fine art products.

Co. is the 2nd largest player in India’s branded ‘stationery and art’ products market. It held 29% and 30% market share, respectively, in FY23 for its core products for pencils and mathematical instrument boxes.

Product-wise Revenue Bifurcation - FY23
Scholastic stationery - 47%
Scholastic art material - 24%
Paper stationery - 10.5%
Kits and Combos - 10.5%
Other products - 8%

Geographical Revenue Bifurcation
Exports - 79% in FY23 vs 76% in FY22
Domestic - 21% in FY23 vs 24% in FY22

I've Posted a detailed Video on it

Robust Growth
We launched our flagship brand, “DOMS” in 2005, which has taken large strides in revolutionising the Indian ‘stationery and art material’ industry. This was followed by a strategic partnership with a listed Italian multinational company, engaged in the supply of various ‘art materials’ and ‘stationery products’, with a global presence, F.I.L.A. – Fabbrica Italiana Lapis ed Affini S.p.A (F.I.L.A.), Italy, in 2012, which has enabled us to gain access to international markets for distribution of our products, augmentation of our R&D and technological capabilities. Later, we acquired Pioneer Stationery Private Limited, a company engaged in the business of manufacturing, selling, marketing and distribution of paper stationery products. In 2023, we acquired a minority stake in ClapJoy Innovations Private Limited, which is in the business of manufacturing and sale of ‘toys’. This acquisition is in line with our objective to increase the breadth of our product offering by entering categories that are associated through the growing years of kids, children and young adults. Further, in the year 2023, we acquired a majority stake in Micro Wood Private Limited, which is in the business of manufacturing tin and paper based packing material. This acquisition is in line with our Company’s strategy in achieving greater degree of backward integration for manufacturing.

Our manufacturing facilities are located in Umbergaon, Gujarat and Jammu & Kashmir, India. The Company’s Manufacturing activities are spread across 1.07 million square feet of built-up-area. Further, to accommodate its immediate growth plan, the Company intends to streamline its operations and enhance its manufacturing capacity for writing instrument products by adding approximately 0.20 million square feet to its Umbergaon Manufacturing Facilities.

In Jammu, current production facilities are spread across 0.07 million square feet of build-up area focused at producing wooden slats from locally sourced wood.

The Indian government has implemented several initiatives to increase the literacy rate

Some of the prominent ones are:
Samagra Shiksha Scheme
The Sarva Shiksha Abhiyan
The Rashtriya Madhyamik Shiksha Abhiyan
Pradhan Mantri Poshan Shakti Nirman Scheme
National Education Policy 2020:
National Scholarship Portal (NSP)
Digital India

Macro-Economic and Overview – Gross Enrolment Ratio of key global countries – across level of education (Primary Education (Class 1st to 5th); Upper Primary Education (Class 6th to 8th); Secondary Education (Class 9th & 10th) and Secondary Education (Class 11th & 12th) Gross Enrolment Ratio (GER) is an important tool for policymakers and educators, as it provides valuable information on access to education and helps to identify areas where improvements are needed. GER is a measure in education that calculates the percentage of students enrolled in a particular level of education (irrespective of age) compared to the total population of that age group. India’s GER for primary school education has grown from 98% to 103% between FY 18 and FY 22. Among the major economies of the world, the GER for China and India has shown growth between CY 17 to CY 21, whereas the GER of countries like USA and Germany has dropped from 104% to 103%, 105% to 101% for the respective countries.

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Rgds,
Naresh G
Sebi Reg. RA
Trade attivo
1450 to 1580
Trade attivo
High 1644
Trade attivo
Weak Mkt

Back to 1400
Trade attivo
High 1880
Trade attivo
High 2035
Nota
High 3096

Means Double in less than 12 yr
Nota
still good scope
Beyond Technical AnalysisFundamental Analysis

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