On Thursday, Honasa Consumer‘s stock soared by 20%, following the announcement of a significant increase in quarterly earnings by the company, which owns the beauty and personal care brand Mamaearth.
The stock reached its maximum trading limit at Rs 423.75 rupees as of 10:02am IST.
For the quarter ending on September 30, Honasa reported a near doubling of its profit to 294.4 million rupees ($3.54 million), compared to the same period last year.This substantial growth was attributed to a robust increase in sales volumes and improved profit margins.
The company’s core profit margins escalated to 8.1%, up from 6.4% a year earlier, while its sales volumes experienced a 21% surge.
Analysts at Jefferies highlighted Honasa Consumer’s exceptional performance in the digital-first beauty and personal care sector in India. They anticipate the company to lead the sector in revenue growth while continuing to enhance its profitability, maintaining their “buy” recommendation for the stock.
In early trading, approximately 9 million shares of Honasa were traded, surpassing the monthly average of 6.2 million shares.
Earlier in the month, Honasa’s Initial Public Offering (IPO) of $204.3 million was met with great enthusiasm, being oversubscribed by 7.6 times.
Since its debut on the stock market on November 7, the stock has experienced significant fluctuations. Initially offered at an IPO price of Rs 324, it opened at a 2% premium, trading at Rs 330. On its first day, it even reached an intraday high of Rs 340.45. However, this initial surge in interest quickly diminished, and within just two days, the stock price dropped to a low of Rs 256 on the BSE.
Since its market debut on November 7, the company’s stock has seen an impressive increase of over 24%.
(With inputs from agencies)
The stock reached its maximum trading limit at Rs 423.75 rupees as of 10:02am IST.
For the quarter ending on September 30, Honasa reported a near doubling of its profit to 294.4 million rupees ($3.54 million), compared to the same period last year.This substantial growth was attributed to a robust increase in sales volumes and improved profit margins.
The company’s core profit margins escalated to 8.1%, up from 6.4% a year earlier, while its sales volumes experienced a 21% surge.
Analysts at Jefferies highlighted Honasa Consumer’s exceptional performance in the digital-first beauty and personal care sector in India. They anticipate the company to lead the sector in revenue growth while continuing to enhance its profitability, maintaining their “buy” recommendation for the stock.
In early trading, approximately 9 million shares of Honasa were traded, surpassing the monthly average of 6.2 million shares.
Earlier in the month, Honasa’s Initial Public Offering (IPO) of $204.3 million was met with great enthusiasm, being oversubscribed by 7.6 times.
Since its debut on the stock market on November 7, the stock has experienced significant fluctuations. Initially offered at an IPO price of Rs 324, it opened at a 2% premium, trading at Rs 330. On its first day, it even reached an intraday high of Rs 340.45. However, this initial surge in interest quickly diminished, and within just two days, the stock price dropped to a low of Rs 256 on the BSE.
Since its market debut on November 7, the company’s stock has seen an impressive increase of over 24%.
(With inputs from agencies)
