Up 160% in 19 months! Mukul Agrawal, Sunil Singhania stay put in this multibagger stock

Seasoned investors of Dalal Street Mukul Mahavir Agrawal and Sunil Singhania have stayed put in Ethos Ltd in the December 2023 quarter, which has delivered multibagger returns to the investors since the debut. However, both Mukul Agrawal and Sunil Singhania own this stock even before the IPO, wherein the picked-up stake in the company listing.

According to the shareholding pattern for the December 2023 quarter, Sunil Singhania's Abakkus Growth Fund-II and Mukul Mahavir Agrawal kept the number of shares consistent in the company even after a stellar rally in the counter. However, both the shareholders kept their stake in the company unchanged.

For the quarter ended on December 31, 2023, Mukul Mahavir Agrawal owned 6,40,000 equity shares in the company, exactly the same number of equity shares as on September 30, 2023. Similarly, Singhania's Abakkus Growth Fund-II continued to hold 3,02,663 equity shares of the company during the December 2023 quarter.

Luxury watch retailer Ethos was listed as the bourses on May 30, 2022, when the company raised a total of Rs 472.29 crore via its IPO, by selling its shares for Rs 878 apiece. The stock made its all-time high at Rs 2,285 on January 3, 2024, delivering an astounding return of 160 per cent over its issue price.

Ethos is the largest luxury and premium watch retailer in India, which delivers premium luxury watches through websites, social media platforms and physical stores. Ethos Limited operates on an omnichannel model and allows customers to order products either offline or online and have the flexibility of buying products at one store and returning at another.

The company's watch portfolio has 50 premium brands including Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, Carl F. Bucherer, Tissot, Raymond Weil, Louis Moinet and Balmain. The company has over 50 physical retail stores in 17 cities in India.

"We are optimistic on Ethos’s business model and growth prospects. Luxury retail in India is relatively smaller compared to global averages. India’s luxury watch market stood at 24% of the overall watch market in FY20 and is expected to reach 27% of the overall market by FY25," said B&K Securities, which recently interacted with management of Ethos.

The rising disposable income, increase in the number of HNIs in fast emerging economies such as India, facilitate the increase of the wealth of people thereby increasing the demand for luxury goods, including watches. The stock is currently trading at PE of 72 times, it added without rating the stock.

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