Ethos Limited witnessed a sharp decline of nearly 6% in its stock price after the Group of Ministers (GoM) proposed increasing the Goods and Services Tax (GST) on high-end luxury wristwatches priced above ₹25,000 from 18% to 28%. This proposal, if approved, could significantly impact companies like Ethos, which deals in premium and luxury watches, adding a potential tax burden on consumers purchasing higher-end timepieces.
Ethos Share Price History (Recent Changes):
- Friday, Oct 18, 2024: Opened at ₹3,110.00, closed at ₹3,098.70 (-0.59%)
- Thursday, Oct 17, 2024: Opened at ₹3,173.00, closed at ₹3,117.05 (-1.04%)
- Wednesday, Oct 16, 2024: Opened at ₹3,092.00, closed at ₹3,149.80 (+1.21%)
The GST proposal was made as part of a broader tax rationalisation strategy, which also includes reducing GST on 20-litre packaged water bottles, bicycles, and exercise notebooks. These adjustments are expected to result in a net revenue gain of ₹22,000 crore, according to estimates.
The luxury goods segment, especially items like wristwatches and high-end shoes, is expected to feel the brunt of the tax increase if the recommendations are approved by the GST Council.
As of 10:00 am the shares were trading 5.93% higher at ₹2,914.95 on NSE.
Ethos Limited is a leading luxury and premium watch retailer in India, with a network of 63 stores across 24 cities, offering an extensive selection of over 65 high-end watch brands. The company delivers a content-rich luxury retail experience through both its online and offline platforms. With a portfolio of more than 7,000 timepieces, Ethos caters to various segments, including premium, bridge-to-luxury, luxury, and ultra-luxury categories.
Ethos retails renowned global brands such as Rolex, Alpina, Breitling, BVLGARI, Bell & Ross, Arnold & Son, Bovet, and many more. Their collection spans various types of watches, including automatic, mechanical, quartz, tourbillon, chronograph, world timer, and perpetual calendar models.
In addition to sales, Ethos provides comprehensive watch care services through Ethos Watch Care and Rimowa Client Care. These services cover the maintenance and repair of over 50 top luxury watch brands, offering services such as movement overhaul, ultrasonic cleaning, and polishing, ensuring that customers’ timepieces are well-maintained.
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