Is Ethos Ltd overvalued or undervalued?

As of November 11, 2024, Ethos Ltd is considered very expensive and overvalued with a PE ratio of 72.58 and an EV to EBITDA of 37.13, significantly higher than its peers, despite strong past returns of 262.77% over three years, but a disappointing year-to-date performance of -1.04% compared to the Sensex's 5.57%.

As of 11 November 2024, Ethos Ltd's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 72.58, an EV to EBITDA of 37.13, and a PEG ratio of 4.65, all of which are considerably high compared to industry norms. <BR><BR>In comparison to its peers, Page Industries Ltd. has a PE ratio of 70.7 and an EV to EBITDA of 48.32, while Jubilant FoodWorks Ltd. shows a PE ratio of 203.42 but a more favorable EV to EBITDA of 31.75. These figures highlight that Ethos Ltd is trading at a premium relative to its peers, reinforcing the conclusion that it is overvalued. Additionally, while Ethos Ltd has shown strong returns over the past three years at 262.77%, its year-to-date performance of -1.04% contrasts with the Sensex's 5.57%, suggesting potential challenges ahead.

What does Ethos Ltd do?

Ethos Ltd operates luxury watch boutiques and is categorized as a Mid Cap company. As of March 2025, it reported net sales of 311 Cr and a net profit of 23 Cr, with a market cap of Rs 7,003 Cr.

Overview:<BR>Ethos Ltd operates a chain of luxury watch boutiques in the Gems, Jewellery and Watches industry and is categorized as a Mid Cap company.<BR><BR>History:<BR>Ethos Ltd was originally incorporated as Kamla Retail Limited in 2007. The company changed its name to Ethos Limited in 2012. The most recent quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>Net Sales: 311 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 23 Cr (Quarterly Results - Mar 2025) <BR>Market Cap: Rs 7,003 Cr (Mid Cap)<BR><BR>Key Metrics:<BR>P/E: 72.00 <BR>Industry P/E: 82 <BR>Dividend Yield: 0.00% <BR>Debt Equity: 0.07 <BR>Return on Equity: 9.80% <BR>Price to Book: 7.08 <BR><BR>Contact Details:<BR>Address: Plot No 3, Sector III Parwanoo Himachal Pradesh : 173220 <BR>Tel: 91 1792 232 462/233 402 <BR>Email: anil.dhiman@ethoswatches.com <BR>Website: http://www.ethoswatches.com

When is the next results date for Ethos Ltd?

No Upcoming Board Meetings

Has Ethos Ltd declared dividend?

No Dividend History Available

Who are the peers of the Ethos Ltd?

Ethos Ltd's peers include Titan Company, Kalyan Jewellers, PC Jeweller, P N Gadgil Jewellers, Senco Gold, Thangamayil Jewellers, Rajesh Exports, Sky Gold & Diamonds, and Vaibhav Global. Ethos Ltd has average management risk and a 1-year return of 12.15%, while PC Jeweller leads with a 154.46% return.

Peers: The peers of Ethos Ltd are Titan Company, Kalyan Jewellers, PC Jeweller, P N Gadgil Jewe., Senco Gold, Thangamayil Jew., Rajesh Exports, Sky Gold & Diam., and Vaibhav Global.<BR><BR>Quality Snapshot: Excellent management risk is observed at Titan Company, Kalyan Jewellers, P N Gadgil Jewe., Thangamayil Jew., and Sky Gold & Diam., while Average management risk is found at Ethos Ltd, Senco Gold, Rajesh Exports, and Vaibhav Global. Below Average management risk is noted for PC Jeweller. Excellent growth is seen at Titan Company, Kalyan Jewellers, P N Gadgil Jewe., Ethos Ltd, Senco Gold, and the rest, while Below Average growth is present at Thangamayil Jew., Rajesh Exports, and Vaibhav Global. Capital Structure is Excellent for P N Gadgil Jewe. and Rajesh Exports, Good for Titan Company, Ethos Ltd, and the rest, while Below Average is noted for Kalyan Jewellers, Senco Gold, and Sky Gold & Diam.<BR><BR>Return Snapshot: The peer with the highest 1-year return is PC Jeweller at 154.46%, while the lowest is Rajesh Exports at -31.38%. Ethos Ltd has a 1-year return of 12.15%, which is higher than Rajesh Exports but lower than PC Jeweller. Additionally, Kalyan Jewellers, PC Jeweller, Senco Gold, Rajesh Exports, and Vaibhav Global all have negative six-month returns.

Who are in the management team of Ethos Ltd?

As of March 2023, the management team of Ethos Ltd includes Yashovardhan Saboo (Chairman & Managing Director), Manoj Gupta (Executive Director), and several independent directors: Anil Khanna, Sundeep Kumar, Dilpreet Singh, Mohaimin Altaf, and Charu Chandra Sharma, along with directors Chitranjan Agarwal and Munisha Gandhi, and Anil Kumar as Company Secretary & Compliance Officer.

As of March 2023, the management team of Ethos Ltd consists of the following individuals:<BR><BR>1. Yashovardhan Saboo - Chairman & Managing Director<BR>2. Anil Khanna - Independent Director<BR>3. Sundeep Kumar - Independent Director<BR>4. DILPREET SINGH - Independent Director<BR>5. Mohaimin Altaf - Independent Director<BR>6. Manoj Gupta - Executive Director<BR>7. Anil Kumar - Company Secretary & Compliance Officer<BR>8. Chitranjan Agarwal - Director<BR>9. Charu Chandra Sharma - Independent Director<BR>10. Munisha Gandhi - Director<BR><BR>Each member holds a significant role within the company, contributing to its governance and management.

Who are the top shareholders of the Ethos Ltd?

The top shareholders of Ethos Ltd include Kddl Limited with 47.03%, mutual funds at 15.56%, foreign institutional investors at 12.56%, and the ICICI Prudential Long Term Wealth Enhancement Fund at 6.85%. Individual investors collectively hold 13.94% of the shares.

The top shareholders of Ethos Ltd include Kddl Limited, which holds the highest stake at 47.03%. The company also has significant institutional backing, with mutual funds holding 15.56% across 10 schemes and foreign institutional investors (FIIs) holding 12.56% through 67 different entities. Additionally, the highest public shareholder is the ICICI Prudential Long Term Wealth Enhancement Fund, which owns 6.85%. Individual investors collectively hold 13.94% of the shares.

How big is Ethos Ltd?

As of 24th July, Ethos Ltd has a market capitalization of 7,696.00 Cr, with net sales of 1,251.63 Cr and a net profit of 96.29 Cr reported in the latest four quarters.

As of 24th July, Ethos Ltd has a market capitalization of 7,696.00 Cr and is classified as a Mid Cap company.<BR><BR>In the latest four quarters, Ethos Ltd reported net sales of 1,251.63 Cr and a net profit of 96.29 Cr.<BR><BR>The latest annual period for the balance sheet is March 2024, with shareholder's funds amounting to 883.97 Cr and total assets of 1,161.60 Cr.

Are Ethos Ltd latest results good or bad?

Ethos Ltd's latest results show strong net sales growth of 29.03% year-on-year, with a net profit increase of 25.08%. However, declining operating margins and negative cash flow raise concerns about the sustainability of this growth.

Ethos Ltd's latest results present a mixed picture. On the positive side, the company achieved a record net sales of ₹383.39 crores in Q2 FY26, reflecting a strong year-on-year growth of 29.03% and a quarter-on-quarter increase of 10.70%. Additionally, net profit rose to ₹23.79 crores, marking a significant 25.08% increase from the previous quarter.<BR><BR>However, there are concerns regarding profitability. The operating margin decreased to 12.76%, down from 13.32% in the prior quarter, indicating some margin pressure. While the profit after tax (PAT) margin improved to 6.21%, it still suggests that the company is facing challenges in maintaining profitability amidst its aggressive expansion strategy.<BR><BR>Overall, while the topline growth is impressive, the margin pressures and the negative operating cash flow of ₹20.29 crores in FY25 raise questions about the sustainability of this growth. Investors should monitor these dynamics closely.

Should I buy, sell or hold Ethos Ltd?

How has been the historical performance of Ethos Ltd?

Ethos Ltd has shown consistent growth in net sales and profitability over the past six years, with net sales increasing from INR 386.57 crore in March 2021 to INR 1,251.63 crore in March 2025, and profit after tax rising from INR 4.62 crore to INR 98.15 crore. The company has also expanded its total assets significantly while effectively managing its liabilities.

Answer:<BR>The historical performance of Ethos Ltd shows a consistent growth trajectory in net sales and profitability over the past six years.<BR><BR>Breakdown:<BR>Ethos Ltd's net sales have increased significantly from INR 386.57 crore in March 2021 to INR 1,251.63 crore in March 2025, reflecting a robust growth trend. Total operating income has followed a similar pattern, rising from INR 457.85 crore in March 2020 to INR 1,251.63 crore in March 2025. The total expenditure, excluding depreciation, has also grown, reaching INR 1,061.56 crore in March 2025, up from INR 346.85 crore in March 2021. Operating profit (PBDIT) has shown a strong upward movement, climbing from INR 39.72 crore in March 2021 to INR 214.37 crore in March 2025. Profit before tax has surged from INR 6.58 crore in March 2021 to INR 131.93 crore in March 2025, while profit after tax has increased from INR 4.62 crore to INR 98.15 crore over the same period. The consolidated net profit has also risen from INR 4.76 crore in March 2021 to INR 96.29 crore in March 2025. The company's total assets have expanded from INR 417.39 crore in March 2020 to INR 1,400.23 crore in March 2025, indicating strong asset growth. Conversely, total liabilities have increased from INR 417.39 crore to INR 1,400.23 crore, with a notable reduction in long-term borrowings from INR 25.17 crore in March 2021 to INR 1.96 crore in March 2025. Cash flow from operating activities has fluctuated, showing a negative cash flow of INR 20 crore in March 2025, while cash flow from investing activities has improved significantly to INR 46 crore in the same period. Overall, Ethos Ltd has demonstrated a strong growth trajectory in sales and profitability, alongside a substantial increase in assets, while managing its liabilities effectively.

Why is Ethos Ltd falling/rising?

As of 02-Dec, Ethos Ltd's stock price is declining, currently at 2,918.65, reflecting a 2.14% drop. Despite some positive fundamentals, recent performance metrics and reduced investor interest indicate significant challenges for the stock.

As of 02-Dec, Ethos Ltd's stock price is falling, currently at 2,918.65, which reflects a decrease of 63.85 points or 2.14%. The stock has been underperforming, having lost 8.44% over the last three days and opened today with a loss of 4.11%. Additionally, the stock has underperformed its sector by 1.73% today. <BR><BR>Investor participation has also declined, with delivery volume dropping by 65.35% compared to the five-day average, indicating reduced interest from investors. Although the stock remains higher than its 50-day, 100-day, and 200-day moving averages, it is lower than its 5-day and 20-day moving averages, suggesting a short-term weakness. <BR><BR>Despite these challenges, Ethos Ltd has some positive aspects, such as a low debt-to-equity ratio and healthy long-term growth in net sales. However, the recent negative performance metrics and falling investor participation are significant factors contributing to the current decline in the stock price.

Is Ethos Ltd technically bullish or bearish?

As of December 2, 2025, the technical trend is bullish with moderate strength, supported by a bullish MACD and moving averages, although caution is advised due to a mildly bearish monthly MACD.

As of 2 December 2025, the technical trend has changed from mildly bullish to bullish. The current technical stance is bullish with moderate strength. Key indicators driving this stance include a bullish MACD on the weekly chart and bullish moving averages on the daily chart. The KST is also bullish on both weekly and monthly time frames, reinforcing the positive outlook. However, the monthly MACD remains mildly bearish, indicating some caution. Overall, the bullish trend is supported by the daily moving averages and weekly KST, despite mixed signals from the monthly indicators.

Which are the latest news on Ethos Ltd?