The shares of this small-cap company rallied 20 percent to hit an all-time high after the company’s net profit increased by 95 percent in the second quarter result.
With a market capitalization of Rs 13,593.80. Honasa Consumer Ltd, On Thursday, The shares were trading at Rs 422.50 a share, An increase of 20 percent from the previous closing price.
Looking into the company’s Financials, Honasa Consumer Ltd’s revenue increased by 5.4 percent on a quarter-on-quarter basis from Rs. 477 crores in Q1FY24 to Rs.503.1 crores in Q2 FY24. Further, revenue increased by 21 percent year-on-year from Rs. 415 crores Q2 FY23 to Rs.503.1 crores Q2 FY24.
Honasa Consumer Ltd’s net profit increased by 19.02 percent on a quarter-on-quarter basis from Rs. 24.7 crores in Q1 FY24 to Rs. 29.4 crores in Q2 FY24. Further, net profit increased by 95 percent year-on-year from Rs. 15.1 crores Q2 FY23 to Rs.29.4 crores Q2 FY24.
International brokerage Jefferies raised its target price on Honasa Consumer, from ₹424 to ₹530 following the company’s impressive second-quarter results. A 25% upside is predicted by the analyst. According to Jefferies, revenue was in line, but margin expansion drove the beat. After one-off adjustments, the EBITDA margin increased by 70 basis points annually.
Establishing Honasa as a Digital First House of Brands with Omnichannel Distribution through Trend Data-Based Innovation, Consumer Playbooks for Brand Building, robust omnichannel distribution, brands with a clear purpose and a robust ESG framework
Honasa Consumer Ltd’s recent shareholding pattern, The Promoters of the The company owns 35.34 percent while Retail shareholders own a 37.13 percent stake in the company and Foreign Institutional Investors own a 7.86 percent stake.
Honasa Consumer Ltd (HCL), the company that runs the Mamaearth brand, uses its digital platform to sell cosmetics and personal hygiene items.
Written by – Abhishek Singh
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