Analysts remain positive on this Mukul Agrawal stock; see up to 60% upside

Domestic brokerage firms continue to remain positive on Ethos Ltd, with some analysts expecting up to 60 per cent upside potential in the counter. Multibagger counters backed by veterans like Mukul Mahavir Agrawal and Hiren Ved's Alchemy Capital have seen a sharp correction in the last few weeks.

Shares of Ethos Ltd surged more than 5 per cent to Rs 2,699.95 on Tuesday, against its close at Rs 2530.80 on Monday, commanding a total market capitalization close to Rs 6,500 crore. However, the stock has dropped nearly 27 per cent from its all-time high at Rs 3,514.95 hit in September 2024.

Ethos Limited is the largest luxury and premium watch retailer in India, which has more than 50 premium brands under its portfolio. Listed in May 2022, Ethos raised a total of Rs 472.29 crore via IPO by selling its shares for Rs 878 per share. The stock has tripled investors' money from IPO price.

Ace Dalal Street investor Mukul Mahavir Agrawal owned 3,00,000 equity shares, or 1.23 per cent stake in Ethos as of December 30, 2024, worth Rs 75.90 crore as of today. Similarly, Hiren Ved's Alchemy Capital held 5,12,500 equity shares, 2.09 per stake in the company as of Q3FY25. It was valued at 129.66 crore as of Tuesday.

Ethos is a leading player in the luxury retail sector, which has maintained its growth trajectory with a robust performance in recent quarters, said YES Securities, which has reaffirmed its 'buy' rating, highlighting its consistent demand without a slowdown. It managed to achieve significant revenue growth in Q3FY25, primarily driven by higher volume sales, it said.

The trend of luxury watches is at a nascent stage in India and the segment is poised to grow well which should benefit Ethos. Onboarding of new brands, opening of new stores in newer geographies, and ramp-up of newly opened stores in past 2-years will accelerate company’s growth going ahead, it added with a target price of Rs 4,011 on the stock, suggesting a 61 per cent upside.

Ethos reported 15.56 per cent jump on a year-on-year (YoY) in consolidated net profit to Rs 29.48 crore in the December 2024 quarter. The company clocked a 31.54 per cent YoY rise in evenue from operations to Rs 369.92 crore in Q3FY25. Its Ebitda rose jumped 23.6 per cent YoY to Rs 62.8 crore, but Ebitda margin fell 100 bps to 16.7 per cent in the reported quarter.


Ethos plans to add 100 stores over the next 5 years, with the company having maintained its long-term growth target of achieving 10 times revenue growth over the next decade. Sustained high demand for luxury and premium watches, expanding footprint in Tier 2/3 Cities, said Hem Securities.

"Diversification into the fast-growing luxury segment – Luggage and Jewellery and CPO Segment. We value the company at 56 times FY26 EPS to arrive at the target price of Rs 2,993," it added with a 'buy' rating on Ethos.

Ethos's promising future is supported by its robust and consistent performance over the last several quarters, driven by sustained strong structural demand; planned store expansion across watch and lifestyle categories; entry into the fast-growing CPO segment; increasing share of high-margin exclusive brands; and diversification and scaling of luxury segment—luggage and jewellery, said Axis Securities

"The company has maintained its long-term growth target of achieving 10 times revenue growth over the next decade. We have cut our FY2 6/27E EPS estimates to account for higher operating costs on account of new store openings," said Axis Securities with a 'buy' rating and a target price of Rs 3,070 on the stock.