Ethos Ltd | Stock Performance Analysis | Company Updates

Ethos sets a high bar: A decade of 25% year-on-year growth; can they achieve it?

Ethos has been a stellar performer, delivering over 250% returns since its listing in June 2022. Read on to know more.

Ethos Ltd, a leading player in the Indian watch and wearables market, is making waves with its focus on the premiumisation theme. Listed on the stock exchange, the company has recently released its strong Q3 FY24 results, further solidifying its position in the premium segment.

Impressive Q3 Performance

Revenue: Increased by 22.44% YoY and 19.56% QoQ.

Profit: Increased by 23.51% YoY and 37.24% QoQ.

Operating Income: Up by 30.27% QoQ and 18.29% YoY.

EPS: Rs 10.84, up by 13.63% YoY.

These figures showcase impressive growth across key financial metrics. Additionally, Ethos boasts a 31% return year-to-date, highlighting investor confidence in the company’s future.

Source: yahoofinance

The stock is strutting its stuff with a high P/E of 88, flaunting its premium brand status with valuations as luxurious as its price tag!

Operational Success

In the first nine months of FY24, the company achieved an impressive 88% new client enrollment rate, with repeat customers accounting for 46% of the business. The recent opening of the first Rimowa boutique in Mumbai’s Jio World Plaza has been a resounding success, and consistently profitable since its launch.

To enhance customer experience further, the company is excited to announce the launch of its new app on March 1, 2024, offering a personalised watch buying experience.

Expansion Plans

Looking ahead, the company is focused on expansion, with plans to open 25 new boutiques by the end of the next financial year. This strategic growth will allow the company to reach new markets and serve a broader customer base, solidifying its position as a leader in the industry.

Strategic Recognition

The company’s commitment to excellence has been recognised globally, as it was honoured as one of the 20 finest retailers in the world by Revolution magazine. Building on this success, the company’s goal is to become one of the world’s top three retailers by the end of the decade.

Embracing the Premiumization Trend

Ethos is strategically capitalizing on the growing aspiration for premium products among Indian consumers. The company offers a curated selection of luxury watch brands, catering to this evolving demand. This focus on premiumization positions Ethos to benefit from the projected growth of the Indian luxury market, estimated to reach $200 billion by 2030 (Bain & Co report).

Looking Ahead

Ethos has provided revenue guidance of 25% year-on-year growth for the next decade, demonstrating their confidence in their long-term vision. Their commitment to premiumization, coupled with strong financial performance, positions them for continued success in the dynamic Indian watch and wearables market.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.