Gianmatteo Terruzzi, aged 51 years, is the Chairman and Independent Director of the Company. He holds a degree in Economics and Business from the Universita Cattolica Del Sacro Cuore, Milan and is registered as a fiduciary in the Register of Fiduciaries, Republic and Canton of Ticino. He was previously associated with LVT Advisors S.R.L. as its sole director, Egida SRL as a director, I.R.E. 2 S.R.L. as its sole director and Lusben Varazze S.R.L. as chief executive officer. Santosh Rasiklal Raveshia, aged 47 years, is the Managing Director and one of the Individual Promoters of the Company. He has been associated with the Company since its incorporation as a Director and Promoter. He passed the secondary school certificate examination held by the Maharashtra State Board of Secondary and Higher Secondary Education. He joined R.R. Industries in 2000 and has been its partner since 2002. Further, he has been the partner of S-Tech Industries since 2006. He is primarily involved in all aspects of the business of the Company, including new product development, crafting, and executing go-to market strategies. Sanjay Mansukhlal Rajani, aged 54 years, is the Whole Time Director and one of the Individual Promoters of the Company. He was sent up for the S.S.C. Exam from Shrimati Gokalibai P. P. High School. He joined R. R. Industries in 1985 and has been its partner since 2011. He is primarily involved in the production and product development of scholastic art and fine art materials in the Company.

A. Balance Sheet

Particular (In Million)	Mar-21	Mar-22	Mar-23
Equity Share Capital	3.73	3.73	3.73
Reserves	2,332	2,469	3,371
Borrowings	973	849	1,001
Trade Payables	568	811	870
Other Liabilities	698	842	1,153
Total Liabilities	2,239	2,502	3,024
Net Block	1,869	1,861	2,799
Capital Work in Progress	31	40	69
Investments	0	0	15
Other Assets	603	627	721
Total NC Assets	2,502	2,528	3,604
Receivables	419	492	356
Inventory	1,208	1,592	1,846
Cash & Bank	290	158	417
Other Assets	156	205	174
Face value	10	10	10

B. Profit & Loss Statement

Particular (In Million)	Mar-21	Mar-22	Mar-23
Sales	4,028	6,836	12,119
Raw Material Cost	2,321	4,251	7,427
Purchases of Stock In Trade	116	137	261
Change in Inventory	16	-68	-55
Employee Cost	711	1,014	1,418
Other Expenses	564	804	1,201
Other Income	60	26	46
Depreciation	348	380	407
EBITDA	360	723	1,913
EBITDA Margin	8.94%	10.58%	15.78%
Interest	88	103	119
Profit before tax	-76	240	1,388
Tax	-16	69	359
Net profit	-60	171	1,029
NPM (%)	-1.47%	2.50%	8.46%

C. Cash Flow Statement

Particular (In Million)	Mar-21	Mar-22	Mar-23
Cash From Operating Activity
Profit From Operation	323	748	1,924
Receivable	-86	-57	135
Inventory	69	-384	-255
Payable	-82	210	62
Loans And Advances	-1	-1	-2
Other WC Items	-49	26	214
Working Capital Changes	-149	-207	154
Direct Taxes	-22	-32	-345
Net Cash Inflow from Operating Activity	152	509	1,733
Cash from Investing Activity
Fixed assets purchased	-230	-349	-1,363
Fixed assets sold	66	2	8
Investments purchased	-32	-1	-10
Investment sold	0	0	0.3
Investment in subsidiaries	-0.2	0	0
Other investing items	9	11	5
Net cash inflow from investing activities	-187	-337	-1,359
Cash from Financing Activity
Proceeds from shares	0.23	0	0
Proceeds from borrowings	424	63	214
Repayment of borrowings	-40	-179	-68
Intrest paid fin	-63	-79	-108
Dividends paid	0	0	-56
Financial liabilities	-51	-79	-74
Other financing items	-21	-31	-32
Net Cash Flow	214	-134	250

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
DOMS Industries Limited	1212	103	16.95	46.6	790	4,794
Kokuyo Camlin Limited	775	24	2.44	42.0	168	1,683
Linc Limited	487	37	25.15	27.1	702	1,045
Navneet Education Limited	1,694	204	9.04	26.8	144	3,270
Flair Writing Industries Limited	942	118	12.66	33.7	377	3,976

* All the data is as per FY23.

Review and Recommendation of DOMS Limited IPO by IZ is 6/10

Overview of DOMS Industries Limited

DOMS Industries Limited, a leader in India’s stationery and art products market, specializes in designing, developing, manufacturing, and selling an array of products under its flagship brand 'DOMS.' The company's presence extends across both domestic and international markets, backed by strong brand recognition.

Product Portfolio

DOMS categorizes its products into seven distinct categories: scholastic stationery, scholastic art material, paper stationery, kits and combos, office supplies, hobby and craft, and fine art products. Its core products, particularly pencils and mathematical instrument boxes, command significant market shares of 29% and 30% respectively. The company has demonstrated rapid growth, being the fastest-growing entity in its sector in India from Fiscal 2020 to Fiscal 2022.

Historical Background and Strategic Partnerships

Founded in 1973 as 'R.R. Industries,' DOMS has undergone various integrations, including the acquisition of 'S. Tech Industries.' A pivotal move in its growth trajectory was the strategic partnership formed with FILA, an Italian multinational in 2012, enhancing its international reach, R&D, and global distribution capabilities.

Manufacturing and Expansion Plans

DOMS operates advanced manufacturing facilities in Umbergaon, Gujarat, and Bari Brahma, Jammu and Kashmir. The company's vertical integration strategy encompasses the entire production process, from raw material procurement to finished goods. To bolster its growth strategy, DOMS has acquired additional land adjacent to its Umbergaon facilities.

Use of Issue Proceeds

The net proceeds from the Fresh Issue are earmarked for partly financing a new manufacturing facility, enhancing the production capabilities for writing instruments, watercolour pens, markers, and highlighters.

Risks and Challenges

DOMS faces several risks, including product concentration risk, with a significant revenue portion reliant on key products like wooden pencils. Its operational dependence on FILA for export sales and intense competition in the market are other notable challenges.

Management Team

Key management personnel include Gianmatteo Terruzzi, Chairman and Independent Director; Santosh Rasiklal Raveshia, Managing Director and Promoter; and Sanjay Mansukhlal Rajani, Whole Time Director and Promoter, each bringing unique skills and experiences to the company.

Financial Performance

The financials of DOMS show a steady increase in sales, raw material costs, and employee expenses over the years. The company has demonstrated an impressive EBITDA margin growth from 8.94% in March 2021 to 15.78% in March 2023. Net Profit Margin (NPM) has also significantly improved, turning around from -1.47% in March 2021 to 8.46% in March 2023.

Valuation Comparison

In comparison to peers like Kokuyo Camlin Limited, Linc Limited, Navneet Education Limited, and Flair Writing Industries Limited, DOMS Industries Limited appears to be on higher P/E.

DOMS Industries Limited J-19, G.I.D.C, Opp. Telephone Exchange Umbergaon – 396 171, Dist. Valsad, Phone: +91 74348 88445 Email: ir@domsindia.com Website: https://domsindia.com/