Top Conviction Ideas : Buy DOMS Industries Ltd for Target Rs. 3,110 - Axis Securities Ltd
Recommendation Rationale
The company has been executing strategic initiatives over the past few years, which are expected to drive growth in the coming years. Key initiatives include:
1) Managing end-to-end operations to enhance efficiency while maintaining high-quality standards. The new 44-acre greenfield facility will further accelerate growth.
2) Expanding beyond the small pencil segment into the larger pens category, broadening the product portfolio. Additionally, entering fast-growing segments such as bags, toys, and diapers will provide an incremental growth boost.
3) Significant potential for distribution expansion, with DOMS currently reaching 1.5 Lc outlets. The company has scope to scale up to ~3-3.5 Lc outlets, particularly in the underpenetrated east and south markets and smaller towns in India.
4) The strategic partnership with FILA, enabling DOMS to expand its global footprint while leveraging FILA’s R&D capabilities, offering a long-term competitive edge.
For More Axis Securities Disclaimer https://simplehai.axisdirect.in/disclaimer-home
SEBI Registration number is INZ000161633
