1 Like
Walking the Talk in terms of results. Good Margin expansion. Keeps on adding brands to the retail mix.
The secondhand market should be the kicker if they get it right. But its a tough business to get into in terms of sourcing and authenticity.
Only worry is why did transfer Silver city stake for such a low amount.
Disc: Have been invested in this before. Rebought around 2350 couple of months back in family accounts. More of a short-term play since they sold silver city.
3 Likes
This is the result for ETHOS right and not KDDL? or is the thread same for both?
Yes, it is for ethos. Separate thread is not there
For the last few days promoters are selling their stake in Ethos, in KDDL concall they said their goal was to reward their shareholders through dividend and they do plan to keep at least majority shareholding in ethos, since there was no cash requirement as such in KDDL does it mean that they feel Ethos is kind of overvalued currently?
1 Like
Thats a good observation. There is quite a bit of contrast in Promoter’s shareholding pattern of KDDL & ETHOS
Just sharing the snapshots from screener.in
2 Likes
Ethos rating upgrade from A to A+ by ICRA
3 Likes
Same thing for KDDL
KDDL Limited : Ratings upgraded to [ICRA]A+(Stable) / [ICRA]A1+ from [ICRA]A(Stable)/ [ICRA]A1
KDDL Limited.pdf (435.7 KB)
KDDL - Board meeting on 9th July to consider BUY-BACK
1 Like
KDDL Buy-Back price fixed at 3700/-
The buyback of up to 2,37,837 (Two Lacs Thirty-Seven Thousand Eight Hundred Thirty-Seven) fully paid-up equity
shares of the Company, each having a face value of INR 10/- (Indian Rupees ten only) (“Equity Shares”), subject to
approval of the shareholders using a Special Resolution through postal ballot, representing up to 1.90% of
the total number of equity shares in the paid-up equity share capital of the Company, at INR 3,700
(Indian Rupees Thirty-Seven Hundred only) per Equity Share (“Buyback Price”) payable in cash for an aggregate
amount not exceeding INR 88,00,00,000 (Indian Rupees Eighty-Eight Crores only) (“Buyback Size”) being 22.35 %
and 12.06% of the aggregate of the fully paid-up equity share capital and free reserves as per the latest audited
standalone and consolidated financial statements of the Company as of 31st March 2024, respectively.
1 Like
Promoter holding has been consistently decreasing in Ethos, and no proper answer was given for a question regarding the same in the concall.
At the same time management reiterates how well the business is doing .
Seems odd.
But bhai, Promoter’s holding in increasing in KDDL itself.
I am invested in KDDL from lower levels.
dr.vikas
Sorry I meant Ethos. I’ve updated my post now.
The Q1 results for Ethos have a good glimpse of the future ahead. Keeping aside the reduction in promotor stake, few key aspects:
Healthy P&L metrics inspite of elections and heat waves
Luxury/ Premium as a trend gaining steam- The higher ASP watches compensated for volume drop and with the rest of the year ahead with wedding dates etc, subsequent quarters should be more exciting
Store openings intact- The company is guiding that it’ll try and fulfil the store opening targets. Anything upwards of 20 against targeted 25 should be a good hit rate
Second hand watches business- If there’s anyone right now who can crack this it is Ethos and the gains would be astonishing if this model is cracked
Healthy SSG- A double digit growth in retail is always welcome and indicates that possibly the company has a good Retail Business Development team and is not dependent on only new stores for growing business
Tie ups with brands and lifestyle store clicking- The management has been doing a lot of work in laying a strong business for future.
Holding from lower levels and biased. Have recently added more basis business understanding
4 Likes
Hi, can anyone explain what this means?
On one side, It says disposal, but on the next side, it says BUYBACK.
I invested from lower levels.
dr.vikas
1 Like
Hi,
I think KDDL had announced a buyback at 3700. The management would have also put their stocks for buyback which is implied by this transaction. Seems to be the case to me.
These many shares would’ve been approved for buyback depending on ratio etc.
Note- Not invested in KDDL and invested in Ethos
1 Like
My thoughts on Ethos and how the company can shape up its business in future. Hope it adds value to the thread.
Note: Is one of the largest holdings and have done transactions in last 30 days as well.
7 Likes
Will this have an negative impact on margins
It may have a temporary impact for a quarter or two. But just like increase in Capital gains taxes, market/customer get used to it after some time. Also people buying luxury watches above Rs 1 Lakh would be hardly worried when the watch cost 10K more than last month
1 Like