Honasa shares made a comeback on Thursday morning after the stock slumped close to 5% on Wednesday. The stock surged close to 10% to hit an all-time high of ₹387.95.
What Happened: Honasa Consumer, the parent company of Mamaearth and The Derma Co, reported its earnings for the quarter ending September 30, 2023. The consolidated net profit surged by 93% to reach ₹29.4 crore, compared to ₹15.1 crore reported in the same period the previous year.
The company’s consolidated revenue from operations also experienced a jump of 21% to reach ₹496 crore in the September quarter, compared to ₹410 crore in the corresponding period last year. During the July-September period, the advertising costs for the company increased by 22% to ₹174 crore.
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The company’s EBITDA was at ₹40 crore with a margin of 8.1%. Basic earnings per share for the quarter came in at ₹0.96.
“Honasa has been able to deliver market-beating growth and constantly improve the profitability portfolio of the company. Our business has grown by 33% YoY in H1 FY24, which is 3.8 times the median growth of FMCG companies in India,” said Varun Alagh, CEO, Honasa Consumer.
Reacting to the results global market research firm Jefferies maintained its “buy” rating for the stock raising the price target to ₹530 from ₹520. An over 50% upside from the stock’s last closing price of ₹353.15. The firm said that the company posted strong numbers on both revenue and margins.
Price Action: Honasa’s share price was up 6.31% to trade at ₹375.45 as the markets opened on Thursday.
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