Upgrades

We reiterate BUY on Ethos with revised TP of Rs3,500 (up ~6% on 3M rollover to Jun-26E; earnings/multiple unchanged).

Landmark Cars’ (LMC) EBITDAM at 5.6%, was down 20bps QoQ, led by weaker gross margins as service revenues at new outlets is in ramp-up phase.

We maintain our BUY rating on the stock

Vedant Fashions (VFL) delivered good quarter with revenue/PAT rising 23%/37% YoY (10%/21% beat) driven by strong SSS growth of 17% YoY, lower base (-12% YoY in 2QFY24), and a favorable shift in festive dates.

We visited Mohey EBO in Jayanagar, Bangalore to get first-hand insights on Vedant Fashion’s (VEDANT) ability to unlock value in women’s wedding and celebration wear market opportunity.

Ethos delivered 4% better EBITDA led by strategic curtailing of marketing spends. Despite operating challenges across the entire retail spectrum, Ethos has outperformed with strong 19% revenue growth.

Optimised seasonal trend; showcased strong performance

Sustaining healthy growth momentum; optimistic outlook

We maintain our BUY rating on the stock based on the company's bright future prospects. Our TP implies a 17% upside from the CMP.

Recommendation With a 30% upside from the CMP, we maintain our long-term BUY rating on the stock.

Vedant Fashions’ (MANYAVAR) Q2FY23 EBITDA at Rs1.2bn (up 27% YoY) was a tad below consensus expectations. Revenue at Rs2.5bn grew 24% YoY (low base).