Ethos Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 8:15 pm

Market Cap	7,592 Cr.
Current Price	3,101
High / Low	3,525/1,889
Stock P/E	83.8
Book Value	379
Dividend Yield	0.00 %
ROCE	14.9 %
ROE	10.9 %
Face Value	10.0
PEG Ratio	1.21

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Ethos Ltd	7,592 Cr.	3,101	3,525/1,889	83.8	379	0.00 %	14.9 %	10.9 %	10.0
KDDL Ltd	3,849 Cr.	3,070	3,815/2,090	41.3	678	2.02 %	18.6 %	17.2 %	10.0
Industry Average	5,720.50 Cr	3,085.50		62.55	528.50	1.01%	16.75%	14.05%	10.00

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	89	134	195	159	174	178	230	208	230	235	281	253	273
Expenses	82	122	169	138	147	152	194	182	196	198	237	217	230
Operating Profit	7	13	26	21	27	26	36	26	34	37	45	36	43
OPM %	7%	10%	13%	13%	16%	15%	16%	12%	15%	16%	16%	14%	16%
Other Income	5	3	3	2	2	4	4	5	5	4	6	9	6
Interest	4	4	4	5	4	3	3	3	4	4	4	4	5
Depreciation	7	8	9	8	8	8	9	9	11	13	13	13	14
Profit before tax	1	4	16	10	17	18	28	18	24	25	34	28	31
Tax %	24%	25%	26%	25%	25%	25%	25%	25%	25%	25%	26%	24%	26%
Net Profit	1	3	12	8	13	14	21	13	18	19	26	21	23
EPS in Rs	0.46	1.45	6.42	4.11	5.48	5.81	8.85	5.69	7.78	7.96	10.42	8.59	9.31

Last Updated: October 7, 2024, 8:06 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 2:35 pm

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	444	458	387	577	789	999	1,042
Expenses	407	402	344	505	668	841	881
Operating Profit	36	56	43	72	120	158	161
OPM %	8%	12%	11%	12%	15%	16%	15%
Other Income	2	2	17	13	15	24	26
Interest	11	24	20	21	20	22	17
Depreciation	5	33	33	32	35	49	52
Profit before tax	22	2	7	32	81	111	118
Tax %	39%	168%	29%	26%	25%	25%
Net Profit	13	-1	5	23	60	83	88
EPS in Rs	7.91	-0.73	2.61	12.26	25.83	34.02	36.28
Dividend Payout %	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	-107.69%	600.00%	360.00%	160.87%	38.33%
Change in YoY Net Profit Growth (%)	0.00%	707.69%	-240.00%	-199.13%	-122.54%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2019-2020 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	18%
3 Years:	37%
TTM:	22%

Compounded Profit Growth
10 Years:	%
5 Years:	44%
3 Years:	160%
TTM:	28%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	63%

Return on Equity
10 Years:	%
5 Years:	10%
3 Years:	12%
Last Year:	11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 4:31 pm

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	17	18	18	19	23	24	24
Reserves	117	132	139	213	608	859	904
Borrowings	69	174	140	161	121	145	180
Other Liabilities	98	98	96	111	127	142	167
Total Liabilities	301	422	394	504	880	1,171	1,275
Fixed Assets	22	125	113	130	197	230	275
CWIP	5	1	4	0	4	9	11
Investments	0	1	1	2	2	25	25
Other Assets	275	296	276	373	677	907	964
Total Assets	301	422	394	504	880	1,171	1,275

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	-22	36	63	17	-2	31
Cash from Investing Activity +	-13	-15	-10	-24	-256	-123
Cash from Financing Activity +	35	-20	-45	26	249	125
Net Cash Flow	0	2	8	19	-10	33

Free Cash Flow

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-33.00	-118.00	-97.00	-89.00	-1.00	13.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	7	7	12	3	3	6
Inventory Days	238	242	256	222	228	230
Days Payable	79	80	93	74	65	50
Cash Conversion Cycle	166	170	174	151	166	185
Working Capital Days	121	135	134	118	132	139
ROCE %		10%	9%	15%	18%	15%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	65.16%	65.16%	64.67%	64.67%	63.82%	63.82%	57.88%	55.72%	54.70%	51.20%
FIIs	7.47%	7.61%	7.49%	7.34%	6.49%	6.69%	10.41%	11.28%	11.20%	12.28%
DIIs	6.95%	7.44%	9.32%	9.75%	10.51%	9.66%	12.17%	13.08%	14.04%	15.64%
Public	20.42%	19.78%	18.52%	18.22%	19.17%	19.84%	19.54%	19.92%	20.04%	20.88%
No. of Shareholders	12,709	13,256	13,862	14,685	15,955	21,657	27,067	29,715	32,330	35,858

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
ICICI Prudential Flexicap Fund	1,573,280	2.76	442.35	1,573,280	2024-12-17	0%
Invesco India Mid Cap Fund	326,675	1.76	91.85	1,573,280	2024-12-17	-79.24%
Invesco India Large & Mid Cap Fund	311,894	1.5	87.69	1,573,280	2024-12-17	-80.18%
Invesco India Smallcap Fund	242,332	1.49	68.14	1,573,280	2024-12-17	-84.6%
ICICI Prudential Bharat Consumption Fund	100,372	1.16	28.22	1,573,280	2024-12-17	-93.62%
Union Small Cap Fund	85,676	1.57	24.09	1,573,280	2024-12-17	-94.55%
Invesco India Flexi Cap Fund	67,923	1.02	19.1	1,573,280	2024-12-17	-95.68%
Bank of India Mid & Small Cap Equity & Debt Fund	34,000	1.14	9.56	1,573,280	2024-12-17	-97.84%
Union Balanced Advantage Fund	26,571	0.46	7.47	1,573,280	2024-12-17	-98.31%
Bandhan Hybrid Equity Fund	26,030	1.01	7.32	1,573,280	2024-12-17	-98.35%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	34.98	26.56	12.69	2.61	-0.75
Diluted EPS (Rs.)	34.98	26.56	12.69	2.59	-0.75
Cash EPS (Rs.)	53.63	40.44	30.13	20.39	17.45
Book Value[Excl.RevalReserv]/Share (Rs.)	361.09	270.46	126.73	86.17	82.29
Book Value[Incl.RevalReserv]/Share (Rs.)	361.09	270.46	126.73	86.17	82.29
Revenue From Operations / Share (Rs.)	408.08	337.71	316.96	212.25	251.39
PBDIT / Share (Rs.)	71.62	55.23	43.75	30.82	30.05
PBIT / Share (Rs.)	51.74	40.40	26.45	12.97	12.05
PBT / Share (Rs.)	45.19	34.34	17.30	3.62	1.27
Net Profit / Share (Rs.)	33.75	25.61	12.83	2.54	-0.54
NP After MI And SOA / Share (Rs.)	34.02	25.82	12.84	2.61	-0.73
PBDIT Margin (%)	17.55	16.35	13.80	14.52	11.95
PBIT Margin (%)	12.67	11.96	8.34	6.11	4.79
PBT Margin (%)	11.07	10.16	5.45	1.70	0.50
Net Profit Margin (%)	8.27	7.58	4.04	1.19	-0.21
NP After MI And SOA Margin (%)	8.33	7.64	4.05	1.23	-0.29
Return on Networth / Equity (%)	9.42	9.54	10.13	3.03	-0.89
Return on Capital Employeed (%)	12.66	12.92	14.16	9.61	8.86
Return On Assets (%)	7.11	6.85	4.63	1.20	-0.31
Long Term Debt / Equity (X)	0.00	0.01	0.11	0.10	0.10
Total Debt / Equity (X)	0.01	0.01	0.25	0.33	0.50
Asset Turnover Ratio (%)	0.97	1.14	1.28	0.94	0.00
Current Ratio (X)	5.06	4.27	2.05	1.73	1.58
Quick Ratio (X)	2.48	2.00	0.52	0.39	0.32
Interest Coverage Ratio (X)	10.95	9.11	4.78	3.30	2.79
Interest Coverage Ratio (Post Tax) (X)	6.16	5.22	2.40	1.27	0.94
Enterprise Value (Cr.)	5994.68	2024.50	0.00	0.00	0.00
EV / Net Operating Revenue (X)	6.00	2.57	0.00	0.00	0.00
EV / EBITDA (X)	34.19	15.70	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	6.34	2.85	0.00	0.00	0.00
Price / BV (X)	7.16	3.56	0.00	0.00	0.00
Price / Net Operating Revenue (X)	6.34	2.85	0.00	0.00	0.00
EarningsYield	0.01	0.02	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 3,531.10

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Undervalued by 13.87% compared to the current share price 3,101.00

Intrinsic Value of as of December 22, 2024 is: 5,977.44

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 92.76% compared to the current share price 3,101.00

Last 5 Year EPS CAGR: 69.28%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (424.57 cr) compared to borrowings (141.43 cr), indicating strong financial stability. The company has shown consistent growth in sales (522.14 cr) and profit (53.29 cr) over the years.	The stock has a low average ROCE of 11.17%, which may not be favorable. The stock has a high average Working Capital Days of 129.83, which may not be favorable. The stock has a high average Cash Conversion Cycle of 168.67, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 8.27%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 12.66% (Industry Average ROCE: 16.75%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 9.42% (Industry Average ROE: 14.05%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 6.16
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 2.48
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 83.8 (Industry average Stock P/E: 62.55)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.01
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Ethos Ltd. is a Public Limited Listed company incorporated on 05/11/2007 and has its registered office in the State of Himachal Pradesh, India. Company’s Corporate Identification Number(CIN) is L52300HP2007PLC030800 and registration number is 030800. Currently Company is involved in the business activities of Retail trade, except of motor vehicles and motorcycles. Company’s Total Operating Revenue is Rs. 577.28 Cr. and Equity Capital is Rs. 19.08 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Watches	Plot No. 3, Parwanoo Himachal Pradesh 173220	investor.communication@ethoswatches.com http://www.ethoswatches.com

Management
Name	Position Held
Mr. Yashovardhan Saboo	Chairman & Managing Director
Mr. Pranav Shankar Saboo	Managing Director & CEO
Mr. Manoj Subramanian	Executive Director
Mr. Chitranjan Agarwal	Non Exe.Non Ind.Director
Mr. Dilpreet Singh	Independent Director
Mr. Sundeep Kumar	Independent Director
Mr. Charu Sharma	Independent Director
Mr. Anil Khanna	Independent Director
Mr. Yogen Khosla	Independent Director
Mrs. Munisha Gandhi	Independent Woman Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹3531.10, which is 13.87% higher than the current market price of ₹3,101.00. The stock has a market capitalization of 7,592 Cr. and recorded a high/low of 3,525/1,889 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹904 Cr and total liabilities of ₹1,275 Cr.

What is the Market Cap of ?

The Market Cap of is 7,592 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 3,101.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 3,525/1,889.

What is the Stock P/E of ?

The Stock P/E of is 83.8.

What is the Book Value of ?

The Book Value of is 379.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is 14.9 %.

What is the ROE of ?

The ROE of is 10.9 %.

What is the Face Value of ?

The Face Value of is 10.0.