Flair Vs DOMS: Unveiling The Best In Stationery Industry

Standing in a stationary shop and wondering which pen to buy for your project or trying to choose which colour palette to choose to paint your canvas? We often end up in such situations, and do you know there are two listed companies in India operating in this industry?

The two companies are Flair and DOMS. These two companies are household names in India, catering to the diverse needs of students, artists, and professionals. Let’s explore these two companies.

Flair Writing Industries Limited

The company was established in the year 1976. Flair is a prominent name in the world of writing instruments, specifically in India. It is headquartered in Mumbai and was founded by Mr Khubilal Jugraj Rathod with a range of metal pens.

The company is committed to quality and innovation, consistently striving to develop new and improved writing devices. Flair’s pillar stones include commitment to Quality and innovation. It develops and manufactures a wide variety of products that are tailored to today’s continuously shifting market.

DOMS Industries Limited

DOMS Industries is another major brand in the Indian market. The company was originally incorporated as ‘Writefine Products Private Limited’ and in October 2006, it was renamed to “DOMS Industries Private Limited”. It traces its lineage back to over 4 decades.

The company has achieved significant growth and brand recognition since its establishment. It offers a wide range of products such as drawing materials, gifting items, pens, and geometrical instruments, paper materials, kits & combos, etc. The company has a strong distribution network in over 45 countries.

Comparative Analysis

Market Capitalisation (As of 2 February 2024)

Flair – Flair is a small-cap company with a market cap of INR 3,419 crore.

DOMS Industries – DOMS Industries is also a small-cap company with a market cap of INR 8,615 crore.

Share Price (As of 2 February 2024)

Flair – INR 324

DOMS Industries – INR1420

Product Portfolio

Flair provides a diverse range of writing products such as pens, pencils, crayons, etc. and stationery products, such as notebooks, diaries, calculators, etc. The products are generally affordable, high-quality, and are meant for everyday use. Flair’s recent developments in premium collections are noteworthy.

On the other hand, DOMS Industries boasts a wider variety of scholastic stationery and art materials such as paints, canvas, brushes, and even office supplies. The company caters to both basic and professional artistic needs. The company’s collaboration with Milan-listed FILA has helped them emphasize producing quality materials to fulfil the evolving customer needs.

Quick look at IPOs

Before delving into the financials, it is important to learn that both DOMS and Flair made waves in the Indian IPO market in late 2023 to offer investors a chance to tap into the booming stationery market of the economy. Let’s have a head-to-head analysis of their IPOs:

Listing Date

Flair – December 1, 2023

DOMS Industries – December 20, 2023

IPO Price

Flair – INR 304

DOMS Industries – INR 790

DOMS Industries raised a total of INR 1,200 crore. The issue was a combination of a fresh issue of INR 450 crore and an Offer for sale (OFS) of INR 750 crore. The final issue price was INR 790 per share. Its main objective was to utilise the proceeds from IPO to expand its manufacturing capacity for a wide range of writing instruments, and markers to strengthen its brand presence in the Indian market. It was listed at INR 1,400 per share on the Indian Stock Exchanges which is 77.2% higher than the issue price.

Flair raised INR 593 crore through a fresh issue of INR 365 crore and an Offer for sale of INR 228 crore. The company plans to invest this capital in a new manufacturing facility for writing instruments in Gujarat with a major focus on international expansion. The final issue price was fixed at INR 304 per share and was listed at 503 which is 65% above the IPO price of INR 304.

We can say that both DOMS Industries and Flair IPOs offered unique opportunities for investors, and the long-term success will depend on the company’s ability to execute its growth strategies.

Financial Statement Analysis

Takeaways from the above table are as follows:

• DOMS Industries generally possesses higher revenue and wider market penetration.
• Flair has narrow profit margins because their focus is on affordable pens and competitive pricing and dependence on sales volume.
• Additionally, DOMS has a higher inventory turnover ratio because of its global presence as compared to Flairs which showcases strong sales.

For your knowledge, the inventory turnover ratio (Higher the better) depicts how often a company sells or replaces its inventory over a given period.

Read Also: What is IEPF? Introduction, Reasons for Transfer, and Process of Claiming Explained

Conclusion

Both companies, i.e., Flair Writing Industries Limited and DOMS Industries Limited are excellent choices for stationery and writing needs in India, with their own set of strengths as well as target consumers. Opting between the two completely depends on individual preferences and choices.

Keep in mind that both companies operate in a dynamic market with several influencing factors. Do proper research and seek professional advice to guide you to your perfect stationery match.

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