Ethos Ltd.
ISIN: INE04TZ01018 • Market Cap: ₹7,771 Cr
The 5-Pillar Quality Audit for Ethos Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (12.9%), Return on Capital Employed (13.1%), and equity compounding (9.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (29.9%) and 3Y PAT CAGR (22.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 74.81 vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 50.6%, backed by 35.2% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 29.9%)
Revenue has expanded at 29.9% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 22.5%)
Net earnings have compounded at 22.5% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (35.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 35.2%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 74.81)
A steep valuation multiple of 74.81 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Consumer Durables)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Durables space.
Quantitative Strategy Eligibility
Checking ETHOSLTD against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 72/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Durables Sector Peer Comparison
Compare ETHOSLTD directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Ethos Ltd. (ETHOSLTD)Current | 72/100 | ₹7,771 Cr | 74.81 | 13.1% | 0.00 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| LG Electronics India Ltd. (LGEINDIA) | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | View |
| Dixon Technologies (India) Ltd. (DIXON) | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | View |
| Havells India Ltd. (HAVELLS) | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | View |
Frequently Asked Questions: Ethos Ltd.
Q:What is the 5-Pillar Fundamental Score for Ethos Ltd. (ETHOSLTD)?
Ethos Ltd. has a RupeeTools Fundamental Score of 72/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (57/100), Financial Health (88/100), Growth (94/100), Valuation (30/100), and Ownership Quality (85/100).
Q:Is ETHOSLTD fundamentally strong for long-term investment?
Yes, ETHOSLTD exhibits solid fundamental strength with a 72/100 score, driven by a return on equity of 9.8% and a debt-to-equity ratio of 0.00.
Q:Does ETHOSLTD pass the Coffee Can Investing filter?
No. ETHOSLTD does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ETHOSLTD compare against other Consumer Durables peers?
Within India's Consumer Durables sector, ETHOSLTD trades at a P/E of 74.81 and generates an ROCE of 13.1%. Compare its 5-Pillar score of 72/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.