Buy Ethos, target price Rs 1400: Emkay Global

Emkay Global has buy call on Ethos with a target price of Rs 1400. The current market price of Ethos Ltd. is Rs 1009.05. Time period given by analyst is one year when Ethos Ltd. price can reach defined target.

Ethos Ltd., incorporated in the year 2007, is a Small Cap company (having a market cap of Rs 2348.12 Crore) operating in General sector.

Ethos Ltd. key Products/Revenue Segments include Watches and Sale of services for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 175.79 Crore, up 9.47 % from last quarter Total Income of Rs 160.58 Crore and up 86.85 % from last year same quarter Total Income of Rs 94.09 Crore. Company reported net profit after tax of Rs 12.63 Crore in latest quarter.

Investment Rationale
Upside risks are entry of high-end luxury brands into India (ASP of >Rs2.5mn), faster growth in HNWI population, and quicker margin expansion. Downside risks are slower development of luxury malls and failure to manage working capital. Based on these, the Sep-23 fair value in bear/base/bull case scenarios is Rs1,100/1,400/1,750, resp

Promoter/FII Holdings
Promoters held 65.16 per cent stake in the company as of 30-Jun-2022, while FIIs owned 7.47 per cent, DIIs 6.95 per cent.