On Thursday, Honasa Consumer's stock experienced a considerable surge following the company’s announcement of profitability for the July to September quarter. The share price opened 6.36% higher, reaching an intraday peak of Rs 308.20 before stabilizing around Rs 295 on the NSE by mid-morning.
Famous for its brands such as Mamaearth and The Derma Co, the company reported a consolidated net profit of Rs 39.22 crore, a notable turnaround from a loss of Rs 18.57 crore in the same quarter the previous year.
Operational revenue rose by 16.5% to Rs 538.06 crore, compared to Rs 461.82 crore in Q2 last year. When including other income, the total revenue reached Rs 558.20 crore, reflecting a 15.8% growth, while overall expenses fell slightly to Rs 505.45 crore.
More than 75% of the company’s revenue came from its key product categories, underscoring its effective category-first strategy. Solid volume growth was recorded, with a UVG increase of 16.7%, indicating healthy consumer demand and a strong performance in its core business.
Market sentiments have been positive yet mixed. Jefferies reiterated a Buy recommendation with a target price of Rs 450, attributing this to volume-driven growth and margin enhancements. Conversely, HSBC maintained a Reduce rating at Rs 264, highlighting moderate revenue growth but improved margins contributing to slight profit upgrades.
This impressive performance signifies Honasa Consumer's robust comeback, showcasing resilience within the FMCG sector and ongoing consumer interest in wellness and personal care products.
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