India’s largest premium watch manufacturing company rose 11.2 percent to Rs 2,144 hitting a 52-week high on Wednesday after announcing strong Q2 results.
Ethos reported that net revenue increased by 32 percent year on year from Rs 177.7 crores in Q2FY23 to Rs 235.2 crores in Q2FY24. On a quarter-on-quarter basis, their revenue increased 2 percent from Rs 230 crore in Q1FY24 to current levels.
In addition, net profit rose 37 percent year on year, from Rs 13.5 crores in Q2FY23 to Rs 18.5 crores in Q2FY24. On a sequential basis, their net profit rose by 2 percent from Rs 18.1 crores in Q1FY24 to current levels.
Ethos is a small-cap company with a Market capitalization of Rs 4,800 crores. It also has a return on equity (ROE) of 14 percent and a return on capital employed (ROCE) of 21 percent.
Compared to its competitor, the company has achieved impressive earnings per share (EPS) of Rs 30 with a lower price-to-earnings ratio (P/E) of 66. Additionally, it has a low debt-to-equity ratio of 0.01 and a higher net profit margin of 7.65 percent as compared to the average of the past three years.
Ethos’ promoters hold a 63.82 percent stake in the company, with 6.7 percent owned by foreign institutional investors, 19.83 percent owned by the general public, and 9.66 percent owned by domestic institutional investors.
Ethos’s share price has risen by 138 percent in a year and by 61 percent in the last six months. For example, if you had invested Rs 1 lakh a year ago, your investment would have grown to Rs 2.38 lakhs today.
Ethos Watch Boutiques is India’s largest chain of luxury watch boutiques, with more than 60 locations in 20 cities. Ethos is an authorized dealer of over sixty luxury watch brands, including Rado, Breitling, Omega, TAG Heuer, and Longines.
Written by Sriram KV
