DOMS
Large CapDOMS Industries Limited
Consumer
DOMS Industries Limited is an Indian manufacturer of stationery and art materials, offering products across scholastic stationery, scholastic art, hobby and craft, kits and combo packs, and office supplies. The company also operates in the baby hygiene segment through its subsidiary Uniclan.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 42/100margin compression · Rev +19% YoY · PAT +14% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹604 Cr | +18.7% | +2.0% |
| EBITDA | ₹101 Cr | +14.8% | -1.9% |
| Operating margin | 17.0% | +0 bps | +0 bps |
| PAT | ₹58 Cr | +13.7% | -4.9% |
| PAT margin | 9.6% | -42 bps | -70 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
FY26 Revenue grew 21.6% exceeding guidance, driven by new launches and buoyant demand. Q4 EBITDA margin moderated to 16.7% (vs 17.3% YoY) due to Uniclan's seasonal slowdown and higher e-commerce costs.
The company delivered strong top-line growth, surpassing its full-year guidance. However, near-term profitability is under stress due to significant raw material inflation (15-20%) linked to geopolitical events, while pricing actions have been calibrated (4-5%). Management prioritizes market share and views margin pressure as temporary, with substantial capacity expansion underway to support future growth.
New Product Launches
New product launches across categories with attractive ergonomic and user-friendly designs resonated strongly with consumers and gained strong traction.
Sustained Category Growth
Witnessed sustained growth across all product categories, with certain categories aided by capacity additions outpacing others.
Buoyant Domestic Demand
Demand scenario in the domestic market continues to remain buoyant, underpinned by strong entrenched distribution network, robust brand equity, and diversified product portfolio.
Office Supplies Segment
Office supply side delivered very great growth over the last few quarters, driven by ball point pens and highlighters. Management believes there is huge headroom for growth.
FY26 Capex
Company spent around INR292 crores in FY26 towards development of 45-acre land, acquisition of additional land in Umargam and Jammu, and procurement/installation of plant and machinery.
FY27 Capex Plan
Lined up a capex plan between INR250 crores to INR275 crores for FY27, including for moulding capacities, writing instruments, and wooden pencils.
45-Acre Facility Development
First building of the 45-acre facility is on track for completion in June 2027, with commercial production expected to commence towards the end of Q2 FY27.
Long-term Capacity Expansion
Total investment in the 45-acre plant over the next 3 years would be close to INR850 crores to INR1,000 crores, eventually doubling manufacturing infrastructure to 4 million square feet.
Buoyant Domestic Demand
The demand scenario in the domestic market continues to remain buoyant and was a key contributor to growth.
Strong Brand Equity & Distribution
Robust brand equity and a well-diversified product portfolio, supported by a strong entrenched distribution network.
New Product Traction
New product launches across categories with attractive ergonomic and user-friendly designs resonated strongly with consumers.
Market Share Opportunity from Imports
Currency fluctuation has made imports slightly expensive, giving a good opportunity for DOMS to reduce/discourage imports and gain market share.
Geopolitical Uncertainties
Elevated uncertainty and volatility primarily stemming from ongoing developments in West Asia, impacting raw material prices.
Raw Material Inflation
Significant increase in prices of raw material, with crude derivatives making cost trends especially sensitive and highly volatile.
Uniclan Seasonal Slowdown
Moderation in EBITDA margin partly due to the onset of the seasonal slowdown in the baby hygiene segment (Uniclan), impacting fixed cost absorption.
Higher E-commerce Costs
Increase in contribution of e-commerce sales in the baby hygiene segment led to higher advertising and marketing and freight expenses.
Raw Material Price Volatility
Near-term environment remains uncertain; significant portion of input basket is directly linked to crude derivatives, making cost trends highly volatile.
Margin Compression
Raw material cost increase (15-17%) versus pricing actions (4-5%) creates a near-term gap, expecting Q1 margins to remain slightly under pressure.
Impact of Pricing on Market Share
Aggressive pricing moves can sometimes lead to loss of shelf space to new entrants and existing competitors, hence a balanced approach is taken.
Execution Risk of Large Capex
The company is in a high capex cycle for the next 3 years, with total investment in the 45-acre plant projected at INR850-1000 crores.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for assessing overall growth and profitability trends, especially given the seasonal nature of the core stationery business (Back-to-School season) and Uniclan's strongest quarter (Q3). QoQ is relevant for tracking sequential momentum, particularly for Uniclan's margin fluctuations and the evolving raw material cost environment.
Revenue Growth
Revenue for FY26 grew by 21.6% to INR2,326.4 crores, surpassing our full year guidance. Q4 FY26 revenue grew by 18.7% to INR604 crores.
Gross Margin (Consumption Margin)
Consumption margins remained broadly stable despite raw material volatility in Q4. Consumption margins were broadly consistent for FY26 at 43.6% similar to FY25.
EBITDA Margin
EBITDA margin at 16.7% in Q4 FY26 (vs 17.3% in Q4 FY25). FY26 EBITDA margin softened to 17.3% (vs 18.2% in FY25) due to higher Uniclan contribution.
Raw Material Cost Trends
Raw material cost increased by approximately 15% to 17% on a weighted average basis since geopolitical tensions started. A significant portion of input basket is directly linked to crude derivatives.
FY27 Revenue Growth Guidance
At consolidated level with planned capacity expansion and current demand trends, we expect revenue to grow by 17% to 20% in FY27.
Temporary Margin Pressure
Near-term margin pressure is not viewed as a structural revision of long-term margin profile, but more of temporary.
Uniclan Outlook
Uniclan is expected to maintain a 20% growth rate and long-term EBITDA margins will stabilize around 10%.
Seven SpA JV Completion
The joint venture entity formation with Seven SpA should be completed before the end of June 2026.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Raw Material Cost Trends | 15-20% inflation since West Asia crisis, partially offset by 4-5% pricing actions. | Stabilization or reversal of crude derivative prices and effectiveness of further calibrated pricing actions to bridge the margin gap. |
| New Capacity Ramp-up | First building of 45-acre facility expected to commence commercial production end of Q2 FY27. | Timely commissioning and utilization ramp-up of new capacities, especially for writing instruments and wooden pencils, to support growth and market share gains. |
| Uniclan Performance | FY26 revenue INR203 crores (23% growth), EBITDA margin 8.6%. Q4 EBITDA margin 6.3% due to seasonality and e-commerce costs. | Sustained 20% revenue growth and progress towards the 10% long-term EBITDA margin target for Uniclan. |
| Market Share Protection | Management prioritizing market share protection and improvement amidst pricing actions. | Evidence of market share gains, particularly against unorganized players and importers, as a result of balanced pricing and distribution strategies. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -7.7% / mo · near 52W low
Technical chart
DOMSweekly · 3Y-24.6%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 35.
- SMA20 falling (~8.3% over last month) — short-term momentum negative.
- RSI(14) at 35 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 29.4%.
- Growth contributes 20/25 to the score.
Main drags
- Valuation is weaker at 8/30; verify the latest quarterly trend.
- Cash flow is weaker at 6/10; verify the latest quarterly trend.
- Quality is weaker at 13/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
High Trust: Claim history is still being built. It ranks around the 98th percentile of the scored universe and 98th percentile within Consumer. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 70.4%. Key concern: ROCE trend is -2.7%.
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
overall median 67 · Consumer: 98th pctile, median 67 · Large: 95th pctile, median 74
48 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
High Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 70.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.8%.
- ▸4 years of positive FCF.
Trust risks
- ▸ROCE trend is -2.7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 54.90
- P/B
- 10.38
- EV/EBITDA
- 26.04
- Market Cap
- 12645.00Cr
Profitability
- ROE
- 20.70%
- ROCE
- 24.30%
- ROA
- 14.02%
- Dividend Y
- 0.15%
Growth (CAGR)
- Revenue 5Y
- 42.00%
- EPS 5Y
- 84.00%
- Revenue 3Y
- 24.00%
- EPS 3Y
- 34.00%
Balance Sheet
- Debt/Equity
- 0.12
- Interest Coverage
- 36.64×
- Altman Z
- 9.34
- Book Value
- 201.00
Cash Flow
- FCF Yield
- 0.83%
- FCF Positive Y
- 4/5
- OCF
- 254.00 Cr
- EPS TTM
- 37.93
Shareholding
- Promoter Hold
- 70.38%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 10%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.