DOMS shares rally 10% to fresh all-time high after Q4 results; brokerages increase target up to Rs 2,121

Shares of DOMS Industries rallied 10% on Tuesday on BSE to its new all-time high of Rs 2,035 after reporting a 29.6% year-on-year (YoY) growth in its Q4 PAT at Rs 46.93 crore against Rs 36.21 crore in the fourth quarter last year.

The company also posted a 20% YoY growth in its revenue from operations which stood at Rs 402.74 crore for the quarter ended March 2024.

Here is what analysts have to say on the Q4 performance of the company:


Nuvama

With stable raw material prices and higher operating efficiency, margins have improved 40bp YoY to 18.8%, above Nuvama’s estimate of 16%. Better-than-expected execution, focused approach on “kid products” launches and capacity expansion on track, shall continue to pave the road for steady growth. On the back of a strong performance and higher earning visibility, Nuvama increased FY25E/26E EPS by 9% each.

Nuvama maintained a ‘buy’ call on the stock with a target price of Rs 2,121.

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ICICI Securities

The domestic brokerage firm expects capacity addition and entry into allied business streams to result in strong growth in FY25-FY26E. Lower input costs and better product mix have led to better-than-expected margin. ICICI Securities remains positive on DOMS due to established competitive advantages of strong distribution and manufacturing capabilities, high brand recall value and strategic partnership with FILA.

ICICI maintained a ‘buy’ view on the stock with a target price of Rs 2,100.

JM Financial

We estimate 23.6%/25.5% sales/PAT CAGR over FY24-26E. Given the superior growth trajectory & healthy RoIC, we expect the stock to trade at a premium multiple. We remain optimistic on the company’s ability to gain market share by focusing on innovations and leveraging end-to-end manufacturing capabilities. Any sharp correction in the stock should be looked at as an opportunity to add.

JM Financial increased the target price to Rs 2,000 while maintaining a ‘buy’ view on the stock.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)