DOMS Industries share price jumps over 5% to record high after Axis Securities assigns ‘Buy’ call, sees 18% more upside

DOMS Industries share price jumped over 5% on Monday to hit a record high of ₹2,367.50 apiece on the BSE after brokerage firm Axis Securities initiated coverage on the stock with a bullish view. This is the seventh straight day of rally for DOMS Industries shares and the stock has gained over 10% in one week.

Axis Securities has assigned a ‘Buy’ rating on DOMS Industries shares with a price target of ₹2,670 per share, representing an upside of 18% from Friday’s closing price.

“Our confidence in DOMS' promising future is grounded in the company’s robust and consistent performance over the past several quarters,” Axis Securities said in a report.

It expects this trend to persist in the coming years, supported by factors such as continued distribution expansion in under-penetrated small towns and east/south markets and b) Sustained focus on NPD, capacity expansion, and entry into the larger pens category, thus broadening its product portfolio beyond the small pencil segment

Additionally, entering the fast-growing bags and toys segments will further boost growth, it added.

The brokerage firm expects DOMS Industries to achieve healthy revenue, EBITDA and net profit growth of 25%, 26% and 28% CAGR, respectively, over FY 2024-2027. This growth trajectory is anticipated to elevate the company’s ROCE from 22% in FY24 to 25% in FY27.

Axis Securities is of the view that with improved visibility in earnings growth and a stronger return profile, DOMS Industries stock appears attractive within the midcap space.

DOMS Industries shares made a stellar stock market debut in December 2023 after its initial public offering (IPO) received strong demand from investors. DOMS Industries shares were listed at ₹1,400 per share, a premium of 77.2% to the issue price of ₹790.

DOMS Industries share price has seen a robust rally since listing as the stock is up more than 69% from its listing price and nearly 200% from its issue price.

At 10:50 am, DOMS Industries shares were trading 2.58% higher at ₹2,312.10 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.