Honasa Consumer’s stock rose approximately 3% following a report of robust quarterly profits, revenue growth, and an optimistic target upgrade by Jefferies, driven by strong performances across its brands and strategic growth plans.
Honasa Consumer shares rose in early trading on Friday after the Mamaearth parent reported a sharp jump in quarterly profit, revenue and operating earnings, prompting Jefferies to lift its target price on the stock. The shares were last up about 3% at ₹494.30, after touching an intraday high of ₹501.60, compared with Thursday’s close of ₹479.45.
The latest results showed why investors reacted positively. Honasa said consolidated net profit in the June quarter climbed to ₹90.3 crore from ₹41.3 crore a year earlier, while revenue increased to roughly ₹756 crore from ₹595 crore. EBITDA, or earnings before interest, tax, depreciation and amortisation, surged to about ₹110 crore from ₹45.8 crore, lifting the margin to 14.6% from 7.7%.
Jefferies said the earnings beat was supported by a recovery in Mamaearth, which it said returned to high-teens growth, while the company’s newer brands continued to expand strongly. The brokerage kept its Buy rating and raised its target price to ₹650 from ₹565, implying further upside from the previous close. Business Standard had earlier reported that Honasa was counting on a rebound in Mamaearth, which remains central to the company’s sales mix.
The improvement also fits with Honasa’s broader five-year plan, according to Arthneeti, which said the company is targeting high-teens compound annual growth and another 500 basis points of EBITDA margin expansion over that period. The company’s focus is now on scaling offline distribution, quick commerce, wellness and fragrances, while maintaining momentum in its core beauty and personal care portfolio.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
