Share price of Domes Industries surged over 5% on Monday to hit a record high of ₹2,367.50 on the BSE after brokerage firm Axis Securities initiated coverage with a bullish outlook on the stock. This is the seventh consecutive day of rise in shares of DOMS Industries and the stock is up more than 10% in a week.
Axis Securities has ‘buy’ rating on shares of DOMS Industries with a price target of ₹2,670 per share, which is 18% higher than Friday’s closing price.
“Our self-confidence in the promising future of DOMS is based on the company’s strong and dependable performance over the past several quarters,” Axis Securities said that in a report.
It expects this trend to continue in the coming years, supported by factors such as a) continued distribution expansion in lower penetration smaller towns and East/South markets and b) continued focus on NPD, capacity expansion and entry into the larger pen category. Additionally, entry into the rapidly growing bags and toys segment will further boost growth.
The brokerage firm expects DOMS Industries to achieve healthy revenue, EBITDA and net profit growth of 25%, 26% and 28% CAGR respectively during FY 2024-2027. With this growth trajectory, the company’s ROCE is expected to increase from 22% in FY24 to 25% in FY27.
Axis Securities believes that with better visibility into earnings growth and a strong return profile, the stock of Domes Industries appears attractive in the midcap sector.
Shares of Domes Industries made a great debut in the stock market in December 2023 after the initial public offering (IPO) received strong demand from investors. Shares of DOMS Industries were listed at ₹1,400 per share, 77.2% higher than the issue price of ₹790.
DOMS Industries share price has seen a strong gathering since listing as the stock is upgrade more than 69 percent from its listing price and almost 200 percent from its issue price.
At 10:50 am, shares of Domes Industries were trading 2.58% higher at ₹2,312.10 on the BSE.