Ethos reported a topline of Rs 3.46 billion, a stellar growth of 27%YoY (2-year CAGR 23%) and 11%QoQ. Topline was better than estimates by 6%. Blended ASP remained steady at ~Rs 213,000; company's growth was driven by healthy volume growth ~25%+YoY. Same-store sales growth stood at robust 17.6%, implying growth from new stores at ~10%+ on YoY basis, reflecting strong traction across all price segments.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Yes Securities Report
We remain confident on Ethos Ltd. and continue to value the company at P/E(x) of 60x on FY27E EPS of Rs 63 (revised downwards by 6%), arriving at target price of Rs 3,722. Hence, we retain our Buy rating on the stock.
We reckon, Ethos is on a strong growth trajectory and the momentum should sustain for coming fiscal on the back of higher demand for luxury watches, new store opening and onboarding of newer brands.
In coming 9M FY26, Ethos is on-track to open 20-new stores, which should accelerate growth. With major volatility in CHF/INR movement behind and brands taking price hikes to mitigate the risk, margins are expected to improve from coming quarter.
Moreover, with SWISS FTA nearing finalization stage, we expect more brands to enter Indian markets and Ethos will be an ideal retailer for the brands.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
