Shares of Honasa Consumer, the parent company of popular brand ‘Mamaearth’, rallied over 7% in intraday trade on Friday, a day after the company released its March quarter results. In the last five sessions, the stock price of the baby, skin, body, and hair care products manufacturer has gained over 11%, with the shares rising in four out of five trading days.
Early today, Honasa shares opened 6.4% higher at ₹444.85 on the BSE after ending 1.8% lower at ₹418.10 in the previous session. The share price of cosmetic company surged as much as 7% to ₹418.10 in two hours of trade so far, while the market capitalisation rose to ₹13,970 crore.
At the time of reporting, Mamaearth parent shares were trading at ₹430.60, up 3% with 0.8 lakh shares changing hands over the counter compared to two-week average of 1.21 lakh stocks. The stock touched its 52-week high of ₹510.75 on January 23, 2024, and a 52-week low of ₹256.10 on November 10. 2023.
In the last one year, Mamaearth shares have risen 28%, while it fell over 9% in the past six months. The counter has given flat return of 1% in a month, whereas it rose over 5% in a week. The stock, which made its debut on November 7, 2023, trades 33% higher than its initial public offering (IPO) price of ₹324 per share.
For the fourth quarter ended March 31, 2024, Honasa Consumer, a consumer brand in beauty and personal care, has posted a net profit of ₹30.4 crore against a loss of ₹161.7 crore in the last year quarter. Sequentially, profit rose 17% from ₹25.9 crore reported in the December quarter of FY24.
The sales for the January-March quarter rose 21.5% year-on-year (23.3% like-for-like) to ₹471 crore. On the operating front, EBITDA stood at ₹33 crore, with margin improving by 780 basis points to 7%.
“As we reflect on quarter and year, we are extremely happy to share that despite industry headwinds, Honasa has demonstrated remarkable resilience and growth for the quarter and fiscal, with a robust LFL growth of 23.3% for the quarter and 31.6% annually,” says Varun Alagh, Chairman and CEO, Honasa Consumer.
Mamaearth's unwavering popularity among consumers has been a key driver of our continued success, while The Derma Co's is catching up and has recently achieved an ARR of ₹500 crore + highlighting our ability to craft and scale new-age beauty brands,” Alagh adds.
For the full financial year ending March 31, 2024, Honasa reported net profit of ₹111 crore, up 5.8%, while sale rose 28.6% to ₹1,920 crore as compared to the previous fiscal. EBITDA for the year was at ₹137 crore with a 562 bps improvement in margin at 7.1%.
As of March 2024, Mamaearth reached 188,377 FMCG retail outlets in India, up 34% YoY, while new products accounted for around 18% of FY24 sales. Throughout the calendar year 23, it introduced 122 new products.
During the year under review, Mamaearth entered into the personal wash segment with a goal to capture a portion of the ₹25,000 crore personal wash market. “The brand also leads in innovation both in terms of formats and ingredients, carving out a distinct niche in the active-based products market. Emerging brands like Aqualogica, Dr. Sheth’s, and BBlunt continue to distinguish themselves through innovative products boasting strong claims that resonate well with consumers,” it says in the earnings release.
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