Goal: ₹3,370
CMP: ₹2,796.55
DOMS reported sturdy 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 each year. Given the capability enlargement, we anticipate hygiene enterprise to supply a further development 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 gradual development path with ongoing enlargement in pens and pencils. Progress over the brand new growth 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 continued enlargement of product basket and distribution community, we anticipate gross sales and PAT CAGR of 27 per cent over FY25-FY27.
Now we have marginally elevated our EPS estimates by round 1-4 per cent over FY25E-FY27E amid sturdy 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).
