Shares of luxury watch retailer Ethos soared over 9 percent to Rs 2,324 on May 14 following its strong performance in the January-March quarter (Q4FY24).
Since the beginning of the year, Ethos has surged over 18 percent, surpassing the 2 percent rise in the benchmark Nifty 50. The company’s shares had reached a 52-week high of Rs 3,040 per share on March 11, 2024.
Ethos reported a 21.7 percent year-on-year increase in consolidated revenue from operations to Rs 252 crore in Q4FY24, with a 58 percent YoY surge in profit-after-tax (PAT) to Rs 21 crore.
Additionally, Ethos’s earnings before interest, tax, depreciation, and amortization (EBITDA) jumped 45.1 percent YoY to Rs 44 crore in Q4FY24, with EBITDA margins improving by 260 basis points (bps) YoY to 17 percent.
Ethos unveiled 10 new boutiques across 9 cities during the quarter, including expansion into 4 new cities. Pranav Saboo, Founder and Managing Director of Ethos, expressed confidence in achieving sustained growth and delivering value to stakeholders.
Analysts at Axis Securities recommended a ‘buy’ rating on Ethos, with a near-term target price of Rs 2,577 per share. They anticipate the company’s EBITDA margin to expand by 100 bps to 15.6 percent by FY26E, driven by factors like improving product mix, store expansion, and increasing the Certified Pre-Owned (CPO) business, aiming to improve the company’s Return on Capital Employed (ROCE) to 20 percent by FY26E.
Ethos holds a significant position in India’s luxury and premium watch retail sector, boasting a 20 percent market share in the luxury segment and a 13 percent share in the premium segment. The company offers a range of over 60 premium and luxury watch brands, including 46 exclusive brands available solely at Ethos outlets.
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