Ethos shares jumped 5% intraday on Wednesday, 23 September, opening at ₹2,649.90 against the previous close of ₹2,614.10 and reaching an intraday high of ₹2,747. According to reports from Mint, the stock has surged 27% over the last six months, though it remains down 7.5% year-to-date. The luxury and premium watch retailer's shares scaled a 52-week high of ₹3,244.45 on 26 November last year and hit a 52-week low of ₹1,921 on 16 March this year. The stock is currently down 7% in September, looking set to snap its three-month winning streak.
Choice Equity Broking has initiated coverage on Ethos with an 'add' recommendation, setting a target price of ₹3,050, according to Mint reports. The brokerage firm values the stock at 40 times September 2028 EPS, implying a 17% upside from the stock's 22 September close of ₹2,614.10. Choice Broking's positive view is based on the company's 103 boutiques across 34 cities and its differentiated position in India's organised luxury watch market through scale, exclusive brand relationships and premiumisation. The firm highlighted that exclusive brands account for around 30% of total sales and offer higher margins, strengthening both differentiation and profitability. As per Mint, the brokerage noted that certified pre-owned (CPO) watches add another layer of moat through sourcing, authentication, refurbishment and specialised watchmaking capabilities in a largely unorganised market.
As reported by Mint, Choice Broking expects Ethos's network 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 estimates nearly 13% same-store sales growth (SSSG) and nearly 22% store count CAGR through FY29E, supporting nearly 26% revenue CAGR. Choice noted that store additions, healthy SSSG and operating leverage should support revenue, EBITDA and PAT CAGR of 26%, 30%, and 33% respectively over FY26 to FY29E. The newer stores are expected to mature, normalising front-end expansion costs while operating leverage and stable CHF/INR should support margin expansion. According to Mint, 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.
According to Mint reports, EBITDA margin is expected to increase from 12.9% in FY26 to 14.4% by FY29E, supported by operating leverage, cost discipline, stable CHF/INR and calibrated price increases. The brokerage firm highlighted that certified pre-owned (CPO) watches add another layer of moat through sourcing, authentication, refurbishment and specialised watchmaking capabilities in a largely unorganised market. Choice noted that Ethos is extending its portfolio to other luxury categories including luggage and jewellery, creating optionality beyond watches, as reported by Mint. The margin expansion is expected to be supported by store additions, healthy SSSG and operating leverage, with the newer stores maturing and normalising front-end expansion costs.
