 "Mamaearth")
Shares of Honasa Consumer, which owns personal care brand Mamaearth, surged 20 per cent on Thursday following a strong showing during the second quarter ended September 2023.
Shares of the company last closed at Rs 424.
The company’s revenue grew 21 per cent year-on-year, volume growth was higher at 27 per cent, and operating margin rose 53 per cent to Rs 40 crore—surpassing Street estimates.
“Honasa reported a strong 2Q on both topline and margin. While there was a growth deceleration from 1Q, management attributed this to ERP (software) changeover and hence, 1H growth of more than 35 per cent reflects the true picture. New brands are scaling up well, with Dr. Sheth now the fourth brand to cross Rs 150 crore ARR (annual revenue). Mamaearth 1H growth was also in double-digit. Management sounded confident on both growth and margins,” said a note by Jefferies.
The brokerage has upgraded Honasa’s earnings estimate by 5-6 per cent. It has also upped its price target from Rs 520 to Rs 530, implying a 25 per cent upside from the current levels.
Shares of Honasa are now up 31 per cent over its IPO price of Rs 324. Honasa’s Rs 1,701-crore IPO had concluded just earlier this month.
