Mamaearth's parent company hits new peak as shares surge 20%
Mamaearth's parent company Honasa Consumer's stock soared to a new peak of Rs. 423.75, a 20% increase on the NSE, after reporting an impressive 93% YoY growth in net profit for Q2 FY24. The company, which also owns The Derma Co, and BBlunt, posted a net profit of Rs. 29.4 crore. This is a major turnaround from a loss of Rs. 15 crore in the same period last year. The company registered Rs. 24.7 crore profit in Q1 FY24.
Q2 revenue and EBITDA growth drive Honasa's performance
The firm's consolidated revenue from operations rose 21% YoY to Rs. 496.1 crore, fueled by a 27% YoY volume growth. Honasa's earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 53% YoY to Rs. 40 crore, with the EBITDA margin increasing by 170 basis points to 8.1%. This growth is credited to the strong performance of its diverse brand portfolio.
Dr Sheth's joins Honasa's Rs 150 crore club
Dr Sheth's has become the fourth brand in Honasa's lineup to reach an annual recurring revenue of Rs. 150 crore, joining Aqualogica and Derma Co. Mamaearth, Honasa's flagship brand, has emerged as the fastest-growing BPC (Beauty and Personal Care) brand in India, boasting annual revenues of Rs. 1,000 crore within six years of its launch. The company's emphasis on product innovation and identifying emerging trends sets it apart from established FMCG competitors.
Jefferies's buy rating and price target boost Honasa's shares
Jefferies's coverage of the stock, giving it a buy rating and setting a price target of Rs. 520 per share, might also have contributed to the stock's sharp jump. Jefferies analysts stated, "Honasa should report industry-leading growth of 27% over the next three years. We estimate EV/sales of 6x Sep-25 (at a discount to HPC peers; implies 67x FY26 price/earnings) to arrive at a price target of Rs. 520."
