Target: £2,845
CMP: £2,408
DOMS’ FY25 Consol sales increased by 25%, while organic sales reached 17% (18-20% lower guidance and guidance). However, this was driven primarily by capacity constraints (the FY25 academic stationary/ART material did not cause major capacity additions, but some delays in construction activities), and demand was not a challenge.
The addition of lines (pen, pencil processing, paper stationery, etc.) to existing infrastructure, and the new greenfield capabilities that will emerge from the end of FY26 should make supply-side challenges easier. Aside, DOMS is expanding its portfolio (subject to schools, Doms Tots Range, Fine Arts and Paper Stationer launches).
Go ahead and the pace of commissioning of new capabilities is key to the acceleration of written equipment. Execution of the paper stationery and UniClan business beyond the medium term (distribution expansion) is another important monitoring option. I love the strength of the DOMS brand, R&D capabilities, a fully integrated manufacturing setup, and the ability of the promoter to leverage these tools to create new growth engines and get the products and prices right. We believe this will continue to outperform the industry’s growth. A sharp modification of the name should be used as an opportunity to add.
Released on June 19, 2025
