Shares of Mamaearth were racing at the bourses on Tuesday, going up over 7% to hit an intraday high of ₹434.90.

What Happened: Shares of the personal care company gained momentum on Monday after announcing that its skincare brand ‘The Derma Co’ has achieved an annual revenue rate (ARR) of ₹500 crore. The brand had achieved EBITDA positivity last December, as per the company.

Reacting to the development, global research firm Jefferies maintained its “buy” rating for the stock with a target price of ₹590. The target indicates an around 46% upside from the stock’s last closing price of ₹404.60.

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The analysts said that the brand has reached a key milestone. Jefferies remarked that Mamaearth has been quick to identify and capitalise on the growing demand for active ingredient-based products in India. This foresight has allowed Honasa to take the lead in offering a diverse range of such products across its prominent brands.

The analysts also praised Honasa’s management for its agility and focus. They prioritize growth, even if it means sacrificing immediate profitability.

Price Action: Mamaearth share price was up 7.02% to trade at ₹433 shortly after market open on Tuesday.

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