The shares of a Micro-Cap company, specializing in online retail of fashion, lifestyle, beauty, and wellness products, jumped upto 5 percent following the acquisition of the additional stake in Varadda Overseas.
Price action
With a market capitalization of Rs. 174.47 Crores on Tuesday, the shares of Womancart Limited jumped upto 4.6 percent, making a high of Rs. 335.00 compared to its previous closing price of Rs. 320.00.
What Happened
Womancart Limited, engaged in the online retail of fashion, lifestyle, beauty, and wellness products, has made a further investment of up to Rs. 4 crores in its subsidiary, Varadda Overseas Private Limited, which specializes in the online retail of fashion and lifestyle products.
Varadda’s turnover has grown significantly from Rs. 0 in 2022 to Rs. 404.68 lakhs in 2024. Womancart currently holds 81.36 percent of Varadda’s shares, with the new investment expected to alter this holding. The acquisition is expected to be completed within two months.
About the Company
Womancart Limited is an e-commerce company specializing in the online retail of fashion, lifestyle, beauty, and wellness products. It offers a curated range of items catering primarily to women. The company aims to deliver quality products through a seamless digital shopping experience and is steadily expanding its presence in the growing online retail market.
Future Outlook
Womancart Limited expects its FY27 target sales to be distributed across key product categories as follows: Beauty (35%), Fashion (20%), Jewellery (15%), Accessories (10%), Fragrance (10%), and Personal Care (10%).
Key Insights
The company maintains a low debt-to-equity ratio of 0.45 and has delivered a strong average ROE of 15.02 percent over the last three years. It has achieved an impressive average revenue growth of 76.86 percent and net profit growth of 91.35 percent during the same period.
Financials
The company’s revenue rose by 107.3 percent, from Rs. 10.59 crore to Rs. 21.96 crore in H1FY24-25. Meanwhile, the net profit rose from Rs. 1.23 crore to Rs. 2.66 crore during the same period.
Written by Sridhar J
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