on Thursday, Honasa ConsumerThe stock soared 20% after the company, which owns beauty and personal care brand Mamaearth, announced a significant increase in quarterly earnings.
The stock hit its highest trading limit of Rs 423.75 by 10:02 AM IST.
For the quarter ending September 30, Honasa reported almost doubling its profit to 294.4 million rupees ($3.54 million) compared with the same period last year. This substantial growth was attributed to strong growth in sales volumes and improved profit margins.
The company’s core profit margin expanded to 8.1% from 6.4% a year earlier, while its sales volumes saw a 21% increase.
Jefferies analysts highlighted Honasa Consumer’s exceptional performance in the digital-first beauty and personal care sector in India. He expects the company to lead the sector in revenue growth while boosting its profitability, maintaining his “buy” recommendation on the stock.
In early trading, nearly 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) $204.3 million was greeted 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. The IPO was initially priced at Rs 324, it opened at a 2% premium and was trading at Rs 330. On its first day, it also reached an intraday high of Rs 340.45. However, this initial surge in interest soon waned and within just two days, the share price fell to a low of Rs 256 on the BSE.
Since its market debut on November 7, the company’s stock has seen an impressive rise of over 24%.
(with inputs from agencies)
The stock hit its highest trading limit of Rs 423.75 by 10:02 AM IST.
For the quarter ending September 30, Honasa reported almost doubling its profit to 294.4 million rupees ($3.54 million) compared with the same period last year. This substantial growth was attributed to strong growth in sales volumes and improved profit margins.
The company’s core profit margin expanded to 8.1% from 6.4% a year earlier, while its sales volumes saw a 21% increase.
Jefferies analysts highlighted Honasa Consumer’s exceptional performance in the digital-first beauty and personal care sector in India. He expects the company to lead the sector in revenue growth while boosting its profitability, maintaining his “buy” recommendation on the stock.
In early trading, nearly 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) $204.3 million was greeted 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. The IPO was initially priced at Rs 324, it opened at a 2% premium and was trading at Rs 330. On its first day, it also reached an intraday high of Rs 340.45. However, this initial surge in interest soon waned and within just two days, the share price fell to a low of Rs 256 on the BSE.
Since its market debut on November 7, the company’s stock has seen an impressive rise of over 24%.
(with inputs from agencies)
(TagstoTranslate)Sensex(T)MamaEarth shares up 20%(T)MamaEarth shares(T)IPO(T)Honaasa Consumer