Dependency RiskThe company is heavily dependent on Rolex, posing both a significant investment opportunity and a risk due to its supply-demand dynamics.
ProfitabilityProfitability was weak in the first half of FY25 due to stock buildup, adverse product mix, and fixed cost challenges, resulting in a lower EBIT margin compared to the previous year.
ROCE MomentumROCE momentum has worsened since FY23 due to EBIT margin erosion and organic sales growth normalisation.