BUY

Result Update Ethos Ltd Target Price

16th May 2025 Retail 3,150

Growth Story Remains Intact; Maintain BUY

(CMP as of 15th May 2025)
Est. Vs. Actual for Q4FY25: Revenue – MISS ; EBITDA – BEAT ; PAT – BEAT CMP (Rs) 2,766
Changes in Estimates post Q4FY25 Upside /Downside (%) 14%
FY26E/FY27E – Revenue: -7%/-8%; EBITDA: -5%/-5%; PAT: -5%/-4% High/Low (Rs) 3514/1963
Recommendation Rationale Market cap (Cr) 6771
• Robust results: Ethos delivered a strong performance in Q4FY25, with revenue increasing Avg. daily vol. (6m) Shrs’000. 42.4
23.3% YoY, driven by sustained demand for premium timepieces. SSSG for FY25 stood at No. of shares (Cr) 2.4
17.4%, while overall volumes grew 15.5% in FY25. The contribution from luxury and high-
luxury segments rose to 70% (vs. 68% YoY), with ASP improving 7.3% YoY to Rs 2.04 Lc. Shareholding (%)
Management remains focused on long-term value creation, reiterating its ambition to scale Sep-24 Dec-24 Mar-25
10x over the next decade.
Promoter 51.2 50.8 50.6
• Margin Performance: EBITDA increased 32% YoY to Rs 48 Cr, with EBITDA margins at
FIIs 12.3 12.6 12.6
15.3%, up 104 bps YoY, supported by gross margin expansion of 186 bps to 31%.
• The structural story remains strong: Ethos’s outlook continues to be backed by robust and MFs / UTI 13.7 14.4 15.6
consistent performance over the past several quarters, led by 1) sustained strong structural Banks / FIs 0.0 0.0 0.0
demand in the premium and luxury watch segment, 2) planned store expansion across watch Others 22.8 22.2 21.3
and lifestyle categories, 3) entry into the fast-growing CPO segment, 4) increasing share of
high-margin exclusive brands, and 5) diversification and scaling of another luxury segment— Financial & Valuations
luggage and jewellery. The company has also reiterated its long-term growth aspiration of Y/E Mar (Rs Cr) FY25A FY26E FY27E
achieving 10x revenue growth over the next decade. Net Sales 1,252 1,595 2,118
Sector Outlook: Positive EBIDTA 190 260 346
Company Outlook & Guidance: Considering the company’s long-term outlook remains strong, Net Profit 96 139 193
we maintain our BUY rating on the stock. EPS, Rs 39.3 56.8 78.9
Current Valuation: 40xMar-27 EPS (Earlier Valuation: 40xDec-26 EPS ) PER, x 70 49 35

Current TP: Rs 3,150/share (Earlier TP: Rs 3,070/share). EV/EBITDA, x 36 26 20

ROE, % 10 12 15
Recommendation: We maintain our BUY rating on the stock
Financial Performance: Ethos delivered strong topline performance despite a challenging Change in Estimates (%)
environment, with revenue growth of 23.3% YoY (25.3% in FY25). SSG improved to 17.4% in
Y/E Mar FY26E FY27E
FY25. EBITDA grew by 32.3% YoY to Rs 48 Cr, with EBITDA margins at 15.3%, up by 104bps
Sales -7% -8%
YoY, due to gross margin expansion of 186bps. The company’s PAT stood at Rs 23 Cr, up 8.2%
EBITDA -5% -5%
YoY.
PAT -5% -4%
Valuation & Outlook: Ethos’ promising future is supported by its robust and consistent
performance over recent quarters, driven by 1) Sustained strong demand in the premium and
luxury watch market, 2) Expansion into the fast-growing CPO segment, 3) Increasing share of Relative Performance
high-margin exclusive brands, 4) Diversification into the growing luxury segments of luggage and 185
jewellery, and 5) Significant potential for margin and ROCE expansion. Given this solid investment 165
thesis, we expect Ethos to achieve a strong revenue CAGR of ~29% and PAT growth of 32% over 145
FY24-27E. After a sharp decline in the stock price, the company is trading at 48x/35x its FY26/27E 125
EPS at the current market price. With enhanced visibility in earnings growth and a stronger return 105
profile, the stock presents an attractive opportunity within the Smallcap space. We maintain our 85
BUY rating, valuing the company at 40x Mar-27 EPS, which results in a target price of Rs 65
3,150/share, implying an upside of 14% from the current market price. 45
25
Key risk – Increase in GST for luxury watches, slowdown in luxury demand Nov-23Mar-24 Jun-24 Oct-24 Jan-25May-25
Key Financials (Consolidated) Ethos Ltd. BSE Sensex

(Rs Cr) Q4FY25 QoQ (%) YoY (%) Axis Est. Variance (%)
Source: Ace Equity, Axis Securities
Net Sales 311 (15.8) 23.3 316 (1.4)
EBITDA 48 (16.5) 32.3 43 10.2
EBITDA Margin (%) 15.3 -12 bps 104 bps 13.7 161 bps
Net Profit 23 (22.9) 8.2 22 3.5
EPS (Rs) 9.3 (22.9) 8.2 9.0 3.5

Source: Company, Axis Research Preeyam Tolia

Research Analyst
email: [email protected]

Suhanee Shome
Research Associate
email: [email protected]

1
Other Key Highlights

• Strong Store Addition: Ethos continued to scale its premium retail footprint in FY25, adding 15 new boutiques (including 1 in Q4FY25)
and expanding its network to 73 stores across 26 cities. The company remains on track to exceed 100 boutiques by FY26, supporting
its aggressive retail expansion strategy. Strengthening its luxury positioning, Ethos plans to launch its second Rimowa boutique in
Delhi and eight additional stores in May 2025, including India’s first exclusive Messika outlet. These initiatives highlight the company’s
strategic focus on premiumisation and deeper penetration in high-opportunity urban markets. Additionally, it launched the 22,000 sq.ft
“City of Time” in Gurgaon, a unique store in India housing 50+ brands and lounges.

• Rimowa – Rimowa’s first store in Mumbai has achieved Rs 20-24 Cr in billing in the first year of operation.

Key Risks to Our Estimates and TP

• Higher volatility in currency exchange rate (CHF/INR),

• Slowdown in the luxury & premium segments.

• Increase in the competitive intensity.

• Increase in GST on luxury goods.

Change in Estimates

Old Est. Revised Est. % Revision

FY26E FY27E FY26E FY27E FY26E FY27E

Revenue 1,713 2,290 1,595 2,118 -7% -8%

EBITDA 273 365 260 346 -5% -5%

PAT 146 201 139 193 -5% -4%

EPS 59.8 82.3 56.8 78.9 -5% -4%

Source: Company, Axis Securities

2
Results Review
Var (%)
% Change % Change
(Rs Cr) Q4FY24 Q3FY25 Axis Est. Q4FY25 Axis Sec
(YoY) (QoQ)
Est.
Net Sales 253 370 316 311 23.3 (15.8) (1.4)
Gross Profit 74 108 90 97 31.1 (10.4) 7.0
Gross Margin (%) 29.2 29.1 28.6 31.0 186 bps 188 bps 243 bps
Employee Expenses 19 24 24 21 10.0 (12.4) (12.0)
Other Expenses 18 26 23 28 51.3 4.6 21.0
EBITDA 36 57 43 48 32.3 (16.5) 10.2
EBITDA Margin (%) 14.2 15.4 13.7 15.3 104 bps -12 bps 161 bps
Oth. Inc 8 6 9 6 (28.4) 4.9 (31.8)
Interest 4 5 5 5 28.7 0.6 (4.2)
Depreciation 13 17 17 17 33.1 1.1 0.1
Share of profit from associates 0 (0) (1)
PBT 28 41 30 30 8.7 (25.8) 1.5
Tax 7 11 8 7 10.3 (33.5) (4.2)

PAT 21 29 22 23 8.2 (22.9) 3.5

EPS 8.6 12.0 9.0 9.3 8.2 (22.9) 3.5

Source: Company, Axis Securities

3
Financials (Consolidated)
Profit & Loss (Rs Cr)
Y/E Mar FY24 FY25A FY26E FY27E
Net sales 999 1,252 1,595 2,118
Growth, % 26.7 25.3 27.4 32.8
Total income 999 1,252 1,595 2,118
Raw material expenses (698) (877) (1,096) (1,447)
Employee expenses (70) (85) (111) (151)
Other Operating Expenses (79) (100) (128) (175)
EBITDA (Core) 152 190 260 346
Growth, % 32.6 25.3 36.6 33.3
Margin, % 15.2 15.2 16.3 16.3
Depreciation (49) (63) (71) (80)
EBIT 103 127 188 267
Growth, % 29.2 23.3 48.3 41.6
Margin, % 10.3 10.2 11.8 12.6
Interest paid (16) (19) (23) (28)
Other Income 24 24 22 21
Non-recurring Items - - - -
Pre-tax profit 111 130 187 259
Tax provided (28) (34) (48) (66)
Profit after tax 83 96 139 193
Growth, % 38.1 15.6 44.4 38.8
Net Profit (adjusted) 83 96 139 193
Unadj. shares (Cr) 2.4 2.4 2.4 2.4
Wtdavg shares (Cr) 2.4 2.4 2.4 2.4
Source: Company, Axis Securities

Balance Sheet (Rs Cr)

Y/E Mar FY24 FY25A FY26E FY27E
Cash & bank 345 220 217 201
Marketable securities at cost - - - -
Debtors 16 18 23 31
Inventory 440 593 755 1,003
Other current assets 63 60 60 60
Total current assets 864 891 1,055 1,295
Investments 25 36 36 36
Gross fixed assets 278 535 605 675
Less: Depreciation (40) (103) (174) (254)
Add: Capital WIP - - - -
Net fixed assets 238 432 431 421
Non-current assets 32 40 40 40
Total assets 1,171 1,410 1,573 1,803

Current liabilities 258 401 426 463

Provisions 2 3 3 3
Total current liabilities 260 404 429 466
Non-current liabilities 26 23 23 23
Total liabilities 287 427 452 489
Paid-up capital 24 24 24 24
Reserves & surplus 859 958 1,097 1,290
Shareholders’ equity 884 982 1,121 1,314
Total equity & liabilities 1,171 1,410 1,573 1,803
Source: Company, Axis Securities

4
Cash Flow (Rs Cr)
Y/E Mar FY24 FY25A FY26E FY27E
Profit Before Tax 111.3 130.1 186.9 259.5
Adjustments for :
Depreciation and Amortisation Expenses 48.7 63.0 71.3 79.5
Write off / loss on sale of property, plant & equipment 0.1 0.8
Interest Paid 16.0 19.3 23.3 28.0
Effect of Exchange rates on the translation of operating cash
0.0 0.1
flows
Profit on the deletion of leased assets
Rent Recession
Loss / (Profit) on Sale of Assets (0.6)
Bad Debts Written Off -
Provision for Bad and Doubtful Debts (1.7) (0.8)
Share of profit of the joint venture (0.7) 1.9
Share options lapsed -
Unrealised foreign exchange gain (0.5) (0.1)
Rent waiver on lease liabilities - (0.4)
Gain on termination of lease contracts. (0.1) (1.1)
Allowance for doubtful debts/(written back) 0.0 0.0
Allowance for doubtful advances/recoverable - 1.1
Interest received (18.3) (21.8)
Advances/deposits / Bad debts written off 0.4 0.2
Other (2.5)
Operating Profit Before Working Capital Changes 152.3 192.1 281.5 367.0
Adjustments for :
(Increase) in loans 0.1 0.2
(Increase) In other financial assets (5.1) (7.3)
Trade receivables (9.6) (2.9) (5.0) (7.6)
Other financial assets 7.6 (7.9)
(Increase) in inventories (99.8) (153.0) (162.5) (247.8)
Increase in provisions 1.1 0.4
Trade Payables 0.9 (7.3) 24.3 37.1
Increase / (Decrease) in Non-Current Liabilities 10.2 (5.7)
Increase / (Decrease) in Current Liabilities 1.0 5.8
(Increase) / Decrease in Non-Current Assets
(Increase) / Decrease in Current Assets
Cash Flow Generated from Operations 58.7 14.4 138.3 148.6
Direct taxes paid (27.9) (34.7) (47.9) (66.4)
A) Net Cash Flow from Operating Activities 30.8 (20.3) 90.5 82.2

B) CASH FLOW FROM INVESTING ACTIVITIES

Purchase of PPE and intangible assets (39.4) (79.3) (70.0) (70.0)
Proceeds from the sale of PPE and intangible assets 7.9 6.0
Purchase of Investments (1.0) (4.7)
Investment in bank deposits (having an original maturity of
(83.7) 101.6
more than three months)
Others (18.4)
Interest received 11.9 23.1
Net Cash Used in Investing Activities (122.8) 46.6 (70.0) (70.0)

C) CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from the issue of equity share capital (including
175.0
premium)
Proceeds of Long-Term Borrowings (Net) 0.3 (0.0)
Share issue expenses (5.4)
(Repayment) of LONG long-term borrowings (1.1)
Proceeds from/of other current borrowings (net) (0.4) (4.7)
repayments of other current borrowings (net)
Payment of the principal portion of lease liabilities (28.1) (33.9)
proceeds from the repayment of current borrowings
Interest paid on lease liabilities (15.1) (18.2) - -
Interest expense paid (0.4) (1.5) (23.3) (28.0)
Net Cash Used in Financing Activities 124.7 (58.4) (23.3) (28.0)

Net Increase/ (Decrease) in Cash and Cash Equivalents 32.7 (32.1) (2.9) (15.8)
Cash and cash equivalents as of 1st April 27.9 60.6 28.5 25.7
Cash and cash equivalents as of 31st March 60.6 28.5 25.7 9.9
Source: Company, Axis Securities

5
Ratio Analysis (%)
Y/E Mar FY24 FY25A FY26E FY27E
Per Share data
EPS (INR) 34.0 39.3 56.8 78.9
Growth, % 28.1 15.6 44.4 38.8
FDEPS (INR) 34.0 39.3 56.8 78.9
CEPS (INR) 53.9 65.1 85.9 111.3
CFPS (INR) 5.3 (7.3) 18.5 13.7
Return ratios
Return on assets (%) 9.7 9.0 10.9 13.1
Return on equity (%) 9.4 9.8 12.4 14.7
Return on capital employed (%) 12.7 12.0 15.1 17.8
Turnover ratios
Asset turnover (x) 1.8 1.5 1.5 1.7
Sales/Total assets (x) 1.0 1.0 1.1 1.3
Sales/Net FA (x) 4.5 3.7 3.7 5.0
Working capital/Sales (x) 0.3 0.2 0.3 0.3
Receivable days 5.7 5.3 5.3 5.3
Inventory days 160.6 172.8 172.8 172.8
Payable days 41.3 30.5 30.9 30.9
Working capital days 95.3 78.5 94.3 108.7
Liquidity ratios
Current ratio (x) 3.4 2.2 2.5 2.8
Quick ratio (x) 1.6 0.7 0.7 0.6
Interest cover (x) 6.4 6.5 8.1 9.5
Total debt/Equity (%) 0.2 0.3 0.3 0.2

Valuation
PER (x) 81.3 70.3 48.7 35.1
PEG (x) - y-o-y growth 2.9 4.5 1.1 0.9
Price/Book (x) 7.7 6.9 6.0 5.2
EV/Net sales (x) 6.6 5.5 4.3 3.2
EV/EBITDA (x) 43.3 36.0 26.4 19.8
EV/EBIT (x) 63.8 53.8 36.3 25.7
Source: Company, Axis Securities

6
 Ethos Ltd Price Chart and Recommendation History

Date Reco TP Research

15-Jan-24 BUY 3,050 Initiating Coverage

15-Feb-24 BUY 3,100 Result Update

14-May-24 BUY 2,700 Result Update

16-Aug-24 BUY 3,600 Result Update

11-Nov-24 BUY 3,450 Result Update

17-Feb-25 BUY 3,070 Result Update

16-May-25 BUY 3,150 Result Update

Source: Axis Securities Research

7
Axis Securities Limited is a subsidiary company of Axis Bank Ltd. Axis Bank Ltd. is a listed public company and one of India’s largest private sector banks and has its
various subsidiaries engaged in businesses of Asset management, NBFC, Merchant Banking, Trusteeship, Venture Capital, Stock Broking, the details in respect of which
are available on www.axisbank.com.

Axis Securities Limited, is registered as a

• Stock Broker, Depository Participant, Portfolio Manager, Investment Adviser and Research Analyst with Securities and Exchange Board of India
• Corporate Agent with Insurance Regulatory and Development Authority of India
• Point of Presence with Pension Fund Regulatory and Development Authority
• Distributor for Mutual Funds with AMFI

Registration Details:

SEBI Single Reg. No.- NSE, BSE,MSEI, MCX & NCDEX – INZ000161633 | SEBI Depository Participant Reg. No. IN-DP-403-2019 | Portfolio Manager Reg. No.-
INP000000654 | Investment Advisor Reg No. INA000000615 | SEBI-Research Analyst Reg. No. INH000000297 | IRDA Corporate Agent (Composite) Reg. No. CA0073|
PFRDA – POP Reg. No. POP387122023 | Mutual Fund Distributor ARN- 64610.

Compliance Officer Details: Name – Mr. Maneesh Mathew, Tel No. – 022-68555574, Email id – [email protected].;

Registered Office Address – Axis Securities Limited, Unit No.002, Building- A, Agastya Corporate Park, Piramal Realty, Kamani Junction, Kurla (W), Mumbai – 400070.

Administrative office address: Axis Securities Limited, Aurum Q Parć, Q2 Building, Unit No. 1001, 10th Floor, Level – 6, Plot No. 4/1 TTC, Thane – Belapur Road, Ghansoli,
Navi Mumbai, Pin Code – 400710.

In case of any grievances please call us at 022-40508080 or write to us [email protected].

We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered in last five years.
However, SEBI, Exchanges, Clearing Corporations and Depositories etc. have conducted the routine inspection and based on their observations have issued
advise/warning/show cause notices/deficiency letters/ or levied penalty or imposed charges for certain deviations observed in inspections or in normal course of business,
as a Stock Broker / Depository Participant/Portfolio Manager. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor
has our certificate of registration been cancelled by SEBI at any point of time.

Investments in securities market are subject to market risks. Read all the related documents carefully before investing.
By referring to any particular sector, Axis Securities does not provide any promise or assurance of favourable view for a particular industry or sector or business group in
any manner.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any
assurance of returns to investors. None of the research recommendations promise or guarantee any assured, minimum or risk-free return to the investors. Our research
should not be considered as an advertisement or advice, professional or otherwise. This research report and its respective content by Axis Securities made available on
this page or otherwise do not constitute an offer to sell or purchase or subscribe for any securities or solicitation of any investments or investment services for the residents
of Canada and / or USA or any jurisdiction where such an offer or solicitation would be illegal.

Subject company(ies) may have been client during twelve months preceding the date of distribution of the research report. Derivatives are a sophisticated investment
device. The investor is requested to take into consideration all the risk factors before actually trading in derivative contracts.

Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future
performance. Information, opinions and estimates contained in this report reflect a judgment of its original date of publication by ASL and are subject to change without
notice. The price, value of and income from any of the securities or financial instruments mentioned in this report can fall as well as rise. The value of securities and financial
instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financial instruments.

The information and opinions in this report have been prepared by Axis Securities and are subject to change without any notice. The report and information contained
herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any
other person or to the media or reproduced in any form, without prior written consent of Axis Securities. The report must not be used as a singular basis of any investment
decision. The views herein are of a general nature and do not consider the risk appetite, investment objective or the particular circumstances of an individual investor. The
investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and the like and take professional advice
before investing.

While we would endeavour to update the information herein on a reasonable basis, Axis Securities is under no obligation to update or keep the information current. Also,
there may be regulatory, compliance or other reasons that may prevent Axis Securities from doing so. Non-rated securities indicate that rating on a particular security has
been suspended temporarily and such suspension is in compliance with applicable regulations and/or Axis Securities policies, in circumstances where Axis Securities
might be acting in an advisory capacity to this company, or in certain other circumstances.

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is
its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document
or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers
may receive this report at the same time. Axis Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes
investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient
should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any
other reason. Axis Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily
a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual
results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. Axis Securities
or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any
other assignment in the past twelve months. Axis Securities or its associates might have received any compensation from the companies mentioned in the report during
the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking
or merchant banking, brokerage services or other advisory service in a merger or specific transaction. Axis Securities or its associates might have received any
compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the report in the past
twelve months. Axis Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. Axis Securities
or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation
of the research report. Accordingly, neither Axis Securities nor Research Analysts and / or their relatives have any material conflict of interest at the time of publication of
this report. Please note that Axis Securities has a proprietary trading desk. This desk maintains an arm’s length distance with the Research team and all its activities are
segregated from Research activities. The proprietary desk operates independently, potentially leading to investment decisions that may deviate from research views.

8
 NEERAJ Digitally signed by
NEERAJ CHADAWAR

CHADAWAR Date: 2025.05.16 08:57:39

+05'30'

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

Research Analyst may have served as an officer, director or employee of subject company(ies). Axis Securities or Research Analysts or their relatives do not own 1% or
more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. Since associates of
Axis Securities and Axis Securities as an entity are engaged in various financial service businesses, they might have financial interests or actual/beneficial ownership of
one percent or more or other material conflict of interest in various companies including the subject company/companies mentioned in this report. Axis Securities may have
issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Certain transactions -including those involving
futures, options and other derivatives as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. Reports based on technical
analysis centres on studying charts of a stock'sprice movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match
with a report on a company's fundamentals.

We and our affiliates/associates, officers, directors, and employees, Research Analyst(including relatives) worldwide may: (a) from time to time, have long or short positions
in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or
other compensation or act as a market maker in the financial instruments of the subject company/company (ies) discussed herein or act as advisor or lender / borrower to
such company (ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication
of Research Report or at the time of public appearance. Axis Securities may have proprietary long/short position in the above mentioned scrip(s) and therefore may be
considered as interested. This should not be construed as invitation or solicitation to do business with Axis Securities. Axis Securities is also a Portfolio Manager. Portfolio
Management Team (PMS) takes its investment decisions independent of the PCG research and accordingly PMS may have positions contrary to the PCG research
recommendation.

RATING SCALE: Definitions of ratings

Ratings Expected absolute returns over 12 – 18 months

BUY More than 10%

HOLD Between 10% and -10%

SELL Less than -10%

NOT RATED We have forward looking estimates for the stock, but we refrain from assigning valuation and recommendation.

UNDER REVIEW We will revisit our recommendation, valuation and estimates on the stock following recent events

NO STANCE We do not have any forward-looking estimates, valuation or recommendation for the stock

Note: Returns stated in the rating scale are our internal benchmark.