Axis Securities Recommends BUY on Skipper and Ethos

Skipper Ltd target price Rs 595, Ethos Ltd target price Rs 3,360.

Reader Takeaway: Strong order books and expansion strategies drive buy calls amidst market volatility for October.

What just happened

Axis Securities has released its October equity strategy, providing fresh 'BUY' recommendations for two major players. The firm is pivoting from macro-driven volatility to earnings-based stock selection. For Skipper Ltd, the brokerage sees a 10% upside potential based on a record order book. For Ethos Ltd, the brokerage projects a 33% upside driven by aggressive boutique network expansion and a new multi-brand retail strategy.

Why this matters

Investors are currently facing macro headwinds, including potential geopolitical tensions and persistent FII selling. By recommending a GARP (Growth at a Reasonable Price) approach, Axis Securities suggests prioritizing companies with visible execution backlogs and scalable business models. Skipper’s record Rs 9,217 Cr order book and Ethos’s plan for 300 stores provide tangible growth metrics for retail portfolios.

Growth Drivers

Skipper Ltd is expanding its capacity by 75,000 MTPA, aiming for a total capacity of 450,000 MTPA by the end of Q2FY27. Ethos Ltd is diversifying its portfolio with the 'Hour Studio' format, which targets a broader consumer segment between Rs 25,000 and Rs 200,000, reducing reliance on ultra-luxury timepieces.

Risks to watch

Market volatility remains a primary concern, with Axis Securities flagging US-Iran tensions and elevated crude oil prices. Additionally, weaker-than-expected Q2FY27 results across the broader market could dampen investor sentiment. Investors are cautioned to maintain 10-15% cash liquidity to manage potential corrections.

What to track next

The execution of Skipper’s Rs 5,000 Cr backlog in FY27 and the successful scale-up of Ethos’s Favre Leuba production (targeted at 8,000 units this year) will be key performance indicators for the coming quarters.