If you’ve been scrolling through market news lately, you should have noticed a craze around small-cap stocks, and their growing popularity. 

While large-cap stocks are the buzz of the town, small-cap companies like DOMS Industries are quietly making moves that have made investors notice them in the crowd.

Small-cap stocks are famous for their growth potential. These companies often introduce fresh ideas, expand aggressively, and make profits around emerging trends. While they can be volatile in nature, their returns for smart investors can be huge.

Take DOMS Industries, for example. This stationery and writing instruments company aren’t just sticking to pens and pencils anymore. They’ve recently entered the baby care products market by acquiring Uniclan Healthcare, to diversify their portfolio.

DOMS, known for its stationery products, is now getting into baby care. They recently acquired Uniclan Healthcare, a company that makes diapers, wipes, and other hygiene products. This move helps DOMS reduce its dependence on stationery alone.

In Q3 FY25, DOMS reported a 35% jump in revenue compared to last year, reaching ₹501.1 crore. Even without Uniclan’s contribution, their core business still grew by 21.4%.

To support this growth, DOMS has added a third diaper production line, boosting capacity to 650 million units. They’ve also set up a 1 MW solar plant in Gujarat to improve efficiency.

Analysts predict DOMS’ earnings will grow at 27% per year between FY25 and FY27. With a target stock price of $38.96, the stock shows strong growth potential.

While small-cap stocks can be unpredictable, companies like DOMS show how smart decisions and expansion can lead to big returns. If you’re looking for fresh investment ideas, small caps like DOMS could be worth considering.

Remember, investing always comes with risks, but keeping an eye on promising growth stories like this one might just lead to your next big win.