Ethos Ltd (ETHOSLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Thangamayil Jew.

Sky Gold & Diam.

Senco Gold

Kalyan Jewellers

P N Gadgil Jewe.

Vaibhav Global

Bluestone Jewel

Rajesh Exports

Goldiam Intl.

Ethos

PC Jeweller

Why is Ethos Ltd ?

Flat results in Dec 25

ROCE(HY) Lowest at 8.65%
DEBTORS TURNOVER RATIO(HY) Lowest at 59.84 times
INTEREST(Q) Highest at Rs 7.59 cr

With ROE of 6.6, it has a Very Expensive valuation with a 4.1 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.27%, its profits have risen by 2.9%

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 5.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.27% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Ethos for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ethos

-11.27%

-0.32

34.73%

Sensex

1.86%

0.15

12.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.20%

EBIT Growth (5y)

41.91%

EBIT to Interest (avg)

4.91

Debt to EBITDA (avg)

2.18

Net Debt to Equity (avg)

-0.34

Sales to Capital Employed (avg)

0.98

Tax Ratio

26.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

33.84%

ROCE (avg)

12.41%

ROE (avg)

8.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.06

EV to EBIT

43.65

EV to EBITDA

26.16

EV to Capital Employed

5.60

EV to Sales

3.54

PEG Ratio

Dividend Yield

ROCE (Latest)

13.22%

ROE (Latest)

6.63%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

NET SALES(Q)

Highest at Rs 468.52 cr

PBDIT(Q)

Highest at Rs 61.40 cr.

PAT(Q)

Highest at Rs 31.75 cr.

-9What is not working for the Company

ROCE(HY)

Lowest at 8.65%

DEBTORS TURNOVER RATIO(HY)

Lowest at 59.84 times

INTEREST(Q)

Highest at Rs 7.59 cr

NON-OPERATING INCOME(Q)

is 35.33 % of Profit Before Tax (PBT

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Here's what is working for Ethos

Net Sales - Quarterly

Highest at Rs 468.52 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 468.52 cr has Grown at 32.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 352.74 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 61.40 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 31.75 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 31.75 cr has Grown at 33.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 23.76 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Ethos

Interest - Quarterly

Highest at Rs 7.59 cr

in the last five quarters and Increased by 15.88 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 35.33 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 59.84 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 15.51 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income