Today, we recommend two stocks, both from the consumer durables & retail sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 25%. India is projected to become the 4th largest consumer durables market by FY27, supported by favourable industry trends. It currently accounts for around 0.6% of the country’s GDP.
The consumer durables sector is anticipated to grow at a CAGR of approximately 11%, reaching a market size of Rs 3 lakh crore by FY29. We also analyzed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
1. Ethos Ltd
- Current price: ₹ 2,354.8
- Target price: ₹ 2,895
- Upside: 22.9%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Founded in 2003, Ethos Limited is India’s leading retailer of luxury watches, offering a collection of over 5,000 timepieces from around 70 high-end brands, including Rolex, Omega, Rado, and Bvlgari. As of Q1FY26, the company operates 80 stores across 26 cities. Ethos has a first-mover advantage in the growing pre-owned luxury watch market, which is becoming increasingly popular due to its cost-effectiveness and ready availability. The company categorises its watch offerings into four price segments: premium (Rs 25,000-1 lakh), bridge to luxury (Rs 1-2.5 lakh), luxury (Rs 2.5-10 lakh), and high luxury (Rs 10 lakh and above).
In Q1 FY26, Ethos Limited reported operating revenue of Rs 346.3 crore, marking a 26.7% YoY growth from Rs 273.2 crore in Q1 FY25. Since FY21, the company has grown its revenue at a robust CAGR of 34%. PAT for Q1FY26 was Rs 19.1 crore, reflecting a 16.2% decline YoY, primarily due to volatility in the CHF/INR exchange rate. However, if currency fluctuations were excluded, the PAT would have been Rs 23.3 crore. Despite the recent dip, PAT has grown at an impressive CAGR of 113% since FY21. Total billings reached Rs 401.2 crore, up 26.12% YoY, continuing a consistent 34% CAGR growth trend since FY21.
In Q1FY26, it added 3 exclusive watch brands, such as Fabergé, D1 Milano, and UNIMATIC, and 1 lifestyle brand, FPM Milano, and added 8 new boutiques. It launched India’s first exclusive Messika Paris boutique in Delhi, marking the French jewellery house’s entry into India and strengthening its global luxury brand portfolio. The average selling price of a watch stood at around Rs 2.13 lakh in Q1FY26, which grew by 17% CAGR since FY21. Exclusive brand boutique revenue contribution for Q1FY26 stood at 28.7% as compared to 28.4% in Q1FY25.
Same-store-sales-growth (SSG) in Q1FY26 stood at 17.6%, up from 12.3% in Q1FY25. Management expects the number of boutiques to cross 100 in FY26. The luxury watch industry has strong key growth drivers, such as a rise in the number of HNIs in fast-growing economies, a surge in the pre-owned watch market due to affordability, and growing fashion consciousness among consumers.
Risk Factor
Ethos naturally requires high working capital, as it must maintain sufficient inventory across different watch categories to meet global display standards and provide a strong customer buying experience. The company is a net importer and imports approximately 40% of its watches, which exposes it to foreign currency fluctuations. It relies on the discretionary spending behavior of the people, and any regulatory headwinds, such as changes in government policies regarding taxation, may disrupt the operations of the company.
2. P N Gadgil Jewellers Ltd
- Current price: ₹ 600
- Target price: ₹ 755
- Upside: 25.83%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
P N Gadgil Jewellers, established in 1832 in Sangli as Shri Ganesh Narayan Gadgil, is currently the second-largest organised jewellery brand in Maharashtra by number of stores. Incorporated in 2013 as P N Gadgil Jewellers Private Limited, the company appointed Madhuri Dixit as its brand ambassador. In 2024, it was listed on both the BSE and NSE.
As of Q1 FY26, the brand operates 55 stores across 27 cities globally, covering a total retail area of 169,174 sq. ft. Of these, 42 follow the Company Owned Company Operated (COCO) model, while 13 operate under the Franchise Owned Company Operated (FOCO) model. Its product portfolio comprises 15 collections and 39,663 Stock Keeping Units, showcasing a strong and diverse offering.
For the quarter ended Q1 FY26, the company reported revenue from operations of Rs 1,714.5 crore, reflecting 2.8% YoY growth. EBITDA stood at Rs 122.8 crore, up 85.4% YoY, with an EBITDA margin of 7.2%, an increase of 320 bps. Consolidated PAT came in at Rs 69 crore, registering 96.3% YoY growth, with a PAT margin of 4%, up by 190 bps. Total debt stood at Rs 854 crore.
The retail segment remains the primary growth driver, contributing 70.3% of total sales and delivering 19% YoY revenue growth. The e-commerce segment recorded a 126% YoY surge to Rs 66 crore, while franchise revenue rose 109% YoY to Rs 269 crore. Studded jewellery saw a 41.6% YoY increase, now accounting for 10% of total retail sales.
Revenue per store stood at Rs 31 crore, while net profit per store reached approximately Rs 1.3 crore, reflecting operational efficiency and profitability. Customer engagement transaction volume grew by 23%, with the average transaction value ranging between Rs 95,000 and Rs 1,00,000. Footfall rose by 25%, supported by a strong conversion rate of nearly 92%.
For FY26, the company plans to add 23-25 new stores over the next three quarters, with 9 expected in Q2 FY26. It aims to reach 100 stores in the next five years by adding 10-15 liteStyle stores annually. Management has guided for FY26 revenue in the range of Rs 9,000-9,500 crore, with expected PAT margins between 3.5% and 4%.
Risk Factor
P N Gadgil Jewellers operates in a highly competitive market, facing pressure from both organized players like Titan, Kalyan Jewellers, PC Jeweller, and Thangamayil, as well as numerous unorganized local competitors. Its profit margins are sensitive to gold price fluctuations, affecting demand and inventory valuation. The industry is also subject to strict regulations, including mandatory hallmarking, bullion purchase restrictions, and limits on gold savings schemes, which can increase compliance costs. Additionally, performance is influenced by seasonality and consumer discretionary spending, which may vary with economic conditions.
Market Recap 15/09/2025
On Monday, the Nifty 50 opened on a flat note at 25,118.9, up just 4.9 points from its previous close of 25,114, ending its winning streak from the past week. It touched an intraday high of 25,138.45 before closing at 25,069.20, down by 44.8 points or -0.18%. Technically, the index remained above all four key exponential moving averages (20/50/100/200-day) on the daily chart.
The BSE Sensex also reflected a flattish trend, opening at 81,925.51, up 20.81 points from its previous close of 81,904.7. It traded in a narrow range similar to the Nifty 50 and settled at 81,785.74, marking a loss of 118.96 points or -0.15%. Momentum indicators showed moderate strength, with the RSI for Nifty 50 at 59.01 and for Sensex at 57.78, both below the overbought level of 70. The Bank Nifty Index closed in positive territory, gaining 78.55 points, or 0.14%, to finish at 54,887.85.
Among sectoral indices, the Nifty Realty Index emerged as the top performer, climbing 21.30 points, or 2.41%, to end at 905.65. Anant Raj Ltd surged 10.5% after reports of potential government incentives for companies in the data center segment. Other real estate stocks like Prestige Estates Projects Ltd, Brigade Ltd, and Oberoi Ltd also rose by up to 2.9%. The Nifty Smallcap 100 index gained 137.10 points, or 0.76%, closing at 18,127. Top gainers included Anant Raj Ltd, Aegis Logistics Ltd, Railtel Corporation of India Ltd, and Ircon International Ltd. The Nifty PSU Index also posted solid gains, closing at 7,099.3, up 42.25 points, or 0.60%.
On the downside, the Nifty Pharma Index was the session’s worst performer, closing at 22,198.70, down 142.50 points or -0.64%. Biocon Ltd dropped 1.9%, while Cipla Ltd and Glenmark Pharmaceuticals Ltd slipped by up to 1.7%. The Nifty IT Index also declined, ending at 35,902.20, down 208.55 points, or -0.58%. Key laggards included Infosys Ltd, Persistent Systems Ltd, Tata Consultancy Services Ltd, and Coforge Ltd, with losses of up to 1.1%. The Nifty Healthcare Index closed at 14,666.70, down 81.10 points or -0.55%.
Asian markets were largely positive on Monday. Hong Kong’s Hang Seng Index rose 99.84 points, or 0.38%, to close at 26,488.00. In contrast, China’s Shanghai Composite Index slipped 10.10 points or -0.26%, ending at 3,860.50. South Korea’s KOSPI Index closed higher at 3,407.31, up 11.77 points or 0.35%, while Japan’s Nikkei 225 Index advanced 395.62 points or 0.88%, finishing at 44,768.12. As of 5:10 p.m. IST, US Dow Jones Futures were trading at 45,917.95, up 83.73 points or 0.18%.
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