Check Before You Invest : Ethos Ltd

BSE: 543532 NSE: ETHOSLTD ISIN: INE04TZ01018

| Sector: Retail | Industry: Retailing

Snapshot

Q.1 Which industry/sub-sector does Ethos Ltd belong to?

Ethos Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Ethos Ltd a good quality company?

Ethos Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Ethos Ltd undervalued or overvalued?

Ethos Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Ethos Ltd a good buy now?

Ethos Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ethos Ltd?

Ethos Ltd revenue growth is 25.4% for FY-2025, which is above its 5-year CAGR of 22.28%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Ethos Ltd?

Ethos Ltd Return on capital employed is 17% for FY-2025, which is in line with its 5-year historical median of 17.09%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Ethos Ltd?

Ethos Ltd Return on Asset is 7.71%, which is in line with its 5-year historical median of 7.71%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Ethos Ltd?

Ethos Ltd Return on equity is 10.55% for FY-2025, which is in line with its 5-year historical median of 10.74%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Ethos Ltd?

Ethos Ltd Cash conversion cycle is 127 days, above its 5-year historical median of 109 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.98	0.98
ROE	10.55	10.74
ROCE	17	17.09
Cash Conversion Cycle	127 days	109 days

Q.6 Gross Profit margin of Ethos Ltd?

Ethos Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.5% for FY-2025, which is above its 5-year median of 14.5%, indicating increasing margins.

Q.7 Operating Profit Margin of Ethos Ltd?

Ethos Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.91% for FY-2025, which is in line with its 5-year median of 15.44% indicating stable margins.

Q.8 Net Profit Margin of Ethos Ltd?

Ethos Ltd Net Profit Margin is 7.85% for FY-2025, is in line with with its 5-year median of 7.58%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.5	14.5
Operating Profit Margin	15.91	15.44
Net Profit Margin	7.85	7.58

Q.9 Debt to Equity ratio of Ethos Ltd?

Ethos Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.41, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ethos Ltd?

Ethos Ltd Debt to cash flow from operations is -0.09, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ethos Ltd?

Promoters hold 50.59% of the Ethos Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ethos Ltd vs industry peers?

Ethos Ltd revenue CAGR is 22.28%, compared to the industry median CAGR of 14.61%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	25.4	14.6
Gross Profit Growth	23.6	NAN
Operating Profit Growth	26.3	NAN
Net Profit Growth	21	14.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.98	1.14
ROE	10.55	7.96
ROCE	17	12.62
Cash Conversion Cycle (days)	127.23	48

Valuation & price assessment

Q.1 Stock return of Ethos Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 24.28% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	24.3%	-2.8%

Q.3 Valuation ratios of Ethos Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	65.36	77.06	37.16
Price to Book	4.4	5.54	2.93
Price to Sales	4.23	5.15	1.30
EV to EBITDA	24.38	30.25	14.03

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