Goal: ₹3,370
CMP: ₹2,796.55
DOMS reported robust efficiency in Q3-FY25 with income/PAT beat of 4/8 per cent respectively led by good present within the hygiene enterprise. Revenues from Uniclan Healthcare (hygiene enterprise subsidiary) stood at ₹50.10 crore with an EBITDA margin of round 10 per cent. Because the third line has commenced manufacturing, put in capability has elevated to 650 million items every year. Given the capability growth, we anticipate hygiene enterprise to offer a further progress fillip in FY26.
Excluding the hygiene enterprise, income was up 21.4 per cent y-o-y with an EBITDA margin of 18.4 per cent indicating core stationary enterprise is on a robust footing. Even core stationary enterprise is on a gentle progress path with ongoing growth in pens and pencils. Progress over the brand new improvement plan on 44-acres land parcel at Umbergaon is on observe and the primary constructing is predicted to be prepared by Q3-FY26E. Led by the continuing growth of product basket and distribution community, we anticipate gross sales and PAT CAGR of 27 per cent over FY25-FY27.
We have now marginally elevated our EPS estimates by round 1-4 per cent over FY25E-FY27E amid robust efficiency in Q3-FY25 and retain Purchase on the inventory with a TP of ₹3,370 (60x FY27E EPS; no change in goal a number of).
