Mamaearth Stock Soars 38% In 2 Sessions, Rallies 43% In 1-Week; Should You Buy?

Honasa Consumer Ltd shares, Mamaearth's parent, witnessed a sharp rally for the last two consecutive days. Honasa Consumer shares rallied 12.84% intraday today after hitting 20% upper circuit yesterday. Current market price of Honasa Consumer stock on BSE is Rs 477.15 apiece with intraday rally of 12.93%. Honasa Consumer stock surged nearly 38% in just 2 consecutive sessions and offered a rally of 43% in last 1-week.

Honasa Consumer Financial Performance: Honasa Consumer on November 22 reported a rally of 93% in its net profit to Rs 29.4 crore for the quarter ended September 30, 2023 as against Rs 15.2 crore reported in the corresponding period of last year. Its revenue from operations for Q2 jumped to 496 crore, up 21% from Rs 410 crore in the similar quarter of last year. The company stated in its BSE filing that its EBITDA stood at Rs 40 crore, up 53% year-on-year (YoY). It is worth mentioning that Honasa Consumer emerged as largest digital-first BPC company that provides a unique proposition of six brands.

H1 FY24: Honasa Consumer delivered INR 961 Cr in revenue from operations, growing 33% YoY (like for like growth of continuing business was 36%). This was driven by volume growth of 35% YoY. With industry leading gross profit of 70%, Honasa Consumer achieved an EBITDA of INR 70 Cr (400% YoY growth) and PAT at INR 54 Cr (1,377% YoY growth).

Q2 FY24: Honasa Consumer delivered INR 496 Cr in revenue from operations, growing 21% YoY (like for like growth of continuing business was 24%). This was driven by volume growth of 27% YoY. In this period, Honasa Consumer achieved an EBITDA of INR 40 Cr (53% YoY growth) and PAT at INR 29 Cr (94% YoY growth).

Should You Buy Honasa Consumer Shares? Leading brokerage firm Jefferies has upgraded the target price on Honasa Consumer to Rs 530 from the previous Rs 520 apiece. If you buy Honasa Consumer shares now, you can fetch likely return of 11.11%. "While there was a growth deceleration from the first quarter, the management attributed this to Enterprise Resource Planning (ERP) changeover and hence, the first half growth of more than 35% reflects true picture," added the brokerage.

Honasa Consumer Stock Performance & Return: The stock's 52-week high price is Rs 487.00 per share and 52-week low price is Rs 256.10 per share, respectively. The company has a market capitalisation of Rs 15,331.23 crore. In last 2-weeks, Honasa Consumer shares soared 49%.

About: Honasa Consumer Limited, is the largest digital-first beauty and personal care company with a diverse portfolio of six brands. Uniquely positioned to capture the growth trends shaping in the BPC market, the company is building brands through on trend data-based innovation and strong omnichannel distribution. Driven by purpose, Honasa Consumer Limited is committed to serving its consumers and the society for a better tomorrow.

Disclaimer:

The stock has been picked from the brokerage report of Jefferies. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.