AnnualReportAI — Business Intelligence
Financial & Valuation Intelligence™

Ethos Limited

NSE
ETHOSLTD
Sector: Consumer Durables· Gems, Jewellery And Watches
Current Price
₹2,348.4
Market Cap
₹7.74K Cr
AI Financial Summary

Ethos Limited demonstrates strong revenue and profit growth with a robust financial position, characterized by low debt and ample liquidity. However, recent profitability metrics, particularly ROE and Net Margin, show signs of decline, and the company has consistently generated negative free cash flow. The current valuation appears elevated compared to its intrinsic value, suggesting a need for careful consideration regarding future shareholder value creation.

Business Performance (CAGR)

10 Years
Revenue
20.2%
PAT
38.6%
EPS
30.3%
Book Value
33.8%
Free Cash Flow
—

Valuation Snapshot

P/E61.7
P/B3.9
EV/EBITDA36.4
P/S4.8
Div Yield—

Financial Health

Debt to Equity0.22
Interest Coverage5.8x
Current Ratio3.55
Cash & Investments₹699 Cr

Profitability Metrics

ROE
6.4%
ROCE
8.7%
ROA
4.3%
EBITDA Mgn
12.6%
Op Margin
9.8%
Net Margin
5.9%

Cash Flow Intelligence

Operating Cash Flow₹90 Cr
Free Cash Flow₹-73 Cr
Cash Conversion94.5%
FCF Margin-4.5%

Intrinsic Value

Premium
Estimated Intrinsic Value
████████
Current Price₹2,348.4
Margin of Safety██.██%
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Estimated Intrinsic Value & DCF Fair Value are available with Premium plans.

AI Business Verdict

Ethos Limited exhibits strong growth and a sound balance sheet but faces challenges with profitability metrics, consistent negative free cash flow, and an elevated valuation. While growth has been impressive, careful attention to capital deployment and profitability trends will be crucial for enhancing long-term shareholder value.

  • Robust revenue and profit growth rates over the past few years.
  • Strong financial health with a low debt-to-equity ratio and high current ratio.
  • Healthy operating cash flow generation, nearly matching net profit.
  • Significant growth in book value per share.

Balance Sheet

AI-Powered Analysis
Balance Sheet Strength™
77/100
Strong

Ethos Limited shows a strong balance sheet with healthy liquidity, moderate leverage and steady equity compounding.

AI Confidence
92%
Stability
70
Flexibility
89
Strength Factors
Liquidity91
Leverage92
Working Capital38
Asset Quality58
Shareholder Strength100
Financial Stability70
Financial Flexibility™
89/100
Excellent

Capacity to fund growth, withstand downturns and return capital.

Total Assets
₹2.20K Cr
▲ 35.8% YoY
Total Liabilities
₹709 Cr
▲ 11.6% YoY
Shareholder Equity
₹1.49K Cr
▲ 51.5% YoY
Net Cash Position
+₹377 Cr
Excellent
Debt / Equity
0.22x
Very Low
Enterprise Value
₹7.36K Cr
Capital Structure
Assets
₹2.20K Cr
Equity
₹1.49K Cr (67.7%)
Liabilities
₹709 Cr (32.3%)
Debt Intelligence™
Debt vs Cash Trend
Debt / Equity0.22x
Interest Coverage5.8x
Debt / EBITDA3.40x
Net Debt₹-377 Cr
Debt Trend (5Y)36.0%
Debt MaturityWell Staggered
Liquidity Intelligence™
Current Ratio3.55
Quick Ratio1.76
Cash Ratio0.93
Working Capital₹988 Cr
Operating Cash CoverageExcellent
Short-term LiquidityExcellent
Working Capital Intelligence™
CCC Trend
Receivable Days4
Inventory Days157
Payable DaysNot Available
Cash Conversion Cycle161 days
Asset Quality (% of Total Assets)
Cash & Investments30.1%
Property, Plant & Equip.22.5%
ReceivablesNot Available
InventoryNot Available
GoodwillNot Available
Intangible AssetsNot Available
Other Assets77.0%
Shareholder Strength™
Strength Radar
Book Value CAGR (5Y)33.8%
Net Worth CAGR (5Y)41.1%
Retained EarningsExcellent
Equity Dilution0.00%
Buyback EfficiencyWeak
Dividend Sustain.Strong
Balance Sheet Evolution
Annual
Balance Sheet Risk Monitor
Debt RiskLow
Liquidity RiskLow
Working Capital RiskHigh
Refinancing RiskLow
Asset Quality RiskElevated
Dilution RiskLow
Contingent LiabilityLow
Overall Balance Sheet RiskModerate
Balance Sheet Stress Test™
Economic Slowdown70
Acquisition Capacity90
High Interest Rates78
Dividend Sustainability94
Revenue Decline90
Cash Flow Resilience81
Expansion Capacity93
Overall Resilience Score
85/100
Strong Resilience
AI Balance Sheet Commentary
Overall Assessment
  • Ethos Limited shows a strong balance sheet with healthy liquidity, moderate leverage and steady equity compounding.
What Stands Out
  • Net cash position — debt fully covered by cash & investments
  • Large cash & investment reserves
  • Very low leverage with net cash balance
  • Strong shareholder equity growth
  • Comfortable short-term liquidity cushion
Areas To Monitor
  • Long working capital cycle
  • Large 'other assets' bucket — investigate composition
Financial data based on consolidated numbers and TTM · Source: Company Filings, Annual Report AI Analysis · Data as of: 31/03/2026