In Q4FY24, consolidated revenue of the luxury watchmaker rose by 21.7% y-o-y to INR 252 crore while its PAT boosted by 58% to INR 21 crore
Ethos, India’s leading vendor of high-end and premium watches has been one of the best performing stocks this year. It rose by 18% compared to a rise of only 2% in Nifty 50 index. It is closing on May 14th with share price gain of more than 9% at Rs2324 following strong financial results for Q4FY24.
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Ethos had its revenue from operations increased by an impressive 21.7% to Rs2.52bn during the quarter. The profit after tax (PAT) jumped up by 58% YoY to Rs210mn while the earnings before interest, tax, depreciation, and amortization (EBITDA), a measure of company’s operating performance, went up by 45.1% YoY to Rs440mn. The EBITDA margins also grew by 260 bps YoY to reach 17%.
Regarding its expansion plan, Ethos has launched ten new stores across nine cities including four new cities confirming its commitment to both digital and physical growth platforms. Pranav Saboo, Founder and Managing Director of Ethos expressed optimism about long-term objectives set for sustainable growth as well as increasing value to shareholders.
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Axis Securities analysts highly recommend buying shares in Ethos with a near term target price of Rs2577 per share. They predict an increase in EBITDA margin by FY26 due improved product mix, store expansion and better business efficiency translating into higher EBITDA margin by FY26e – at least around FY16-18 levels (100 bp increase). Ethos currently commands a market share of about 20% in the luxury segment and about 13% in the premium segment offering over sixty brands belonging to this category aside from those which belong exclusively to it that include forty-six brands only sold through Ethos outlets alone.
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