Actually these are results of KDDL, the holding company of Ethos Limited. I would prefer to play the premiumisation theme with Ethos instead of KDDL
1 Like
If we delve deeper and take into account the holding company discount for KDDL, it still seems undervalued to me. It appears that the markets have also realized this, as evidenced by KDDL’s 37%+ rise and Ethos’ 23%+ rise in the last month. I believe that this trend will continue until the gap between Ethos and KDDL’s valuations is bridged.
1 Like
One more point to be noted is - KDDL is not a pure play holding company. It has its own business of exporting dials and handles to Swiss watchmakers.
So actually the holding discount should be less than pure holding companies.
My personal opinion and BIASED due to sudden recent gains.
dr.vikas
1 Like
I agree with hotels companies, but again hotels as a business has a reputation of its own and I would choose to stay away from it.
Regarding KDDL and Ethos. Great, need to think about the valuations and MOS!
Whether its Landmark Cars or Ethos these are growth stories that are bound to perform well due to higher dsiposable income levels and premiumzation trend (which is strong at this point of time in india).
And retail premium businesses like these are always on a higher side of valuation scale and one cannot pick them at very low PE of 10x or 15x PE.It’s just that the time of entry should suffice the growth of both the stock price and the company.
Pls share your thoughts on this fellow investors
1 Like
Brand Concepts is an excellent play on premiumisation trend with luggage and other accessories with some prominent brands like Tommy Hilfiger and UCB
Do check the thread.
1 Like
MOS drastically changes from from PE of 15x to 30x to 45x to 80x. Also margins ?? What PE is given for 10% margin business versus 15% business. Then you go Price/Sales (PS)? Is 10x or 20x justified? That we need to decide.
Only issue many perceive is the ownership of Manu Sharma (Jessica Lal Murderer and son of haryana strongman politician Vinod Sharma)
2 Likes
Yes, that risk remains. As per info, he spent 15 years jail and then came out finally on no objection from Lal’s family. Having said this, I think, as long as product is well received and same is reflective in numbers, valuation shall sustain.
Disclaimer: Holding since 98 levels. Views may be biased.