Ace Investor: One of India's top investors - Mukesh Agarwal buys a stake in this luxury watch company

Mukesh Agarwal has purchased a 3.96% stake in the company, whose shares are trading near its fresh 52-week high.

Mukesh Agarwal is among the top investors in India. He has a portfolio size of Rs 2170 crore and has well-diversified holdings of 50 stocks across different sectors.

He is a member of Multi Commodity Exchange of India Ltd, National Stock Exchange of India Ltd, and Derivatives Segment at Bombay Stock Exchange. He is also a board of directors of Namah Capital Resources Ltd, Supreme Infrastructure India Ltd, Pranam Reality Pvt Ltd, and Param Capital Research Pvt Ltd.

Recently, according to June quarterly filings, he has added Ethos Ltd to his portfolio. He has purchased a 3.96% stake in the company. It was recently listed on both NSE and BSE.

The company is one of India’s largest luxury and premium watch retailers and has 50 stores across 17 major cities in India. Tissot, IWC Schaffhausen, Omega, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Jaeger LeCoultre Baume & Mercier, Oris SA, Corum, Carl F. Bucherer, Balmain, Raymond Weil, and Louis Moinet are the brands under which the company operates its business. Almost 37.64% of the company’s revenue comes from its “www.ethoswatches.com” website.

The Q4 FY22 result for the company was decent when compared to YOY numbers. A 29% YOY growth in revenue was observed. Also, there was a staggering 80% increase in the company’s net profit numbers. However, on a sequential basis, the revenue dropped by 18.73%.

Talking about the shareholding pattern, the promoter’s own 65.16% stake, FIIs & DIIs together hold 14.42%, and the rest 20.42% is owned by the non-institutional investors.

As per the March period ending, the company has an ROE and ROCE of 12% and 13.9%, respectively. The shares of the company are trading at a PE multiple of 85.6x.

On July 18, at 12 pm, the stock is trading at Rs 860.5 with 2.16% gain for the day. The stock has a 52-week high and low of Rs 873 and Rs 711.6.