Ethos shares jumped 5% in intraday trade on the BSE on Wednesday, 23 September, looking set to extend gains for the second consecutive session. Ethos share price opened at ₹2,649.90 against its previous close of ₹2,614.10 and jumped 5.1% to an intraday high of ₹2,747. At this price, the stock has surged 27% in the last six months, even as year-to-date, it is down 7.5%.
Ethos share price trend
Shares of the luxury and premium watch retailer scaled a 52-week high of ₹3,244.45 on 26 November last year and a 52-week low of ₹1,921 on 16 March this year.
The stock is down 7% so far in September, looking set to snap its three-month winning streak.
Choice Broking expects double-digit upside
Brokerage firm Choice Equity Broking is positive on the shares of Ethos, one of India’s leading luxury and premium watch retailers, with 103 boutiques across 34 cities.
The brokerage firm has initiated coverage on the stock with an “add” recommendation, setting a target price of ₹3,050, valuing the stock at 40 times September 2028 EPS, and implying a 17% upside from the stock’s 22 September close of ₹2,614.10.
Choice Broking’s positive view of the stock is based on the company’s store expansion plans, the premiumisation trend, and the increasing contribution from exclusive brands.
Choice highlighted that Ethos has built a differentiated position in India’s organised luxury watch market through scale, exclusive brand relationships and premiumisation.
“Exclusive brands account for around 30% of total sales and offer a higher margin, strengthening both differentiation and profitability. Certified pre-owned (CPO) watches add another layer of moat through sourcing, authentication, refurbishment and specialised watchmaking capabilities in a largely unorganised market,” said Choice.
The brokerage firm added that Ethos is also extending its portfolio to other luxury categories, including luggage and jewellery, creating optionality beyond watches.
Moreover, Choice underscored that Ethos’s network is expected to increase from 103 stores to 169 by FY29E, while management targets nearly 200 stores over the next 3 to 4 years. The brokerage firm expects the company’s store additions to remain a key growth driver, supported by larger formats, better locations and broader brand assortments, which should improve store productivity.
“We estimate nearly 13% same-store sales growth (SSSG) and nearly 22% store count CAGR through FY29E, supporting nearly 26% revenue CAGR. As the newer stores mature, front-end expansion costs should normalise, while operating leverage, cost discipline, stable CHF/INR (Swiss franc/the Indian rupee) and calibrated price increases should support margin expansion, with EBITDA margin increasing from 12.9% in FY26 to 14.4% by FY29E,” said Choice.
“Store additions, healthy SSSG and operating leverage should support revenue, EBITDA and PAT CAGR of 26%, 30%, and 33%, respectively, over FY26 to FY29E,” Choice said.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the broking firm, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
