Doms Industries IPO Opens For Subscription: Should You Invest Or Not?

At the upper end of the price band, the company's price-to-earnings ratio is 43.2 times, which is higher than the industry average of 36 times, according to KRChoksey Shares and Securities Pvt. It recommends a 'Subscribe' rating for the issue.

"We believe the premium is justified given the company's robust market share, established distribution network, expansion of capacities and venturing into new markets, and strong revenue growth and profitability," it said.

Doms Industries had a two-year revenue compound annual growth rate of 73.5% between financial years 2021 and 2023, which is much higher than most of their listed industry peers, the brokerage said.

Anand Rathi Share and Stock Brokers Ltd. said that at the upper price band, the company is valuing at a P/E of 46 times, EV/Ebitda of 15.33 times and return on net worth of 28.39%. "We believe that valuation of the company is fairly priced and recommend a Subscribe-long-term rating to the IPO."

Doms Industries designs, develops, manufactures and sells a wide range of stationery and art products, primarily under their flagship brand, in the domestic market as well as in over 45 countries internationally.

They are the second largest player in India's branded stationery and art products market, with a market share of 12% by value, as of the last fiscal.