Last Updated: November 20, 2023, 14:48 IST
Shares of newly-listed Honasa Consumer, which runs Mamaearth and different magnificence and private care manufacturers, climbed practically 11 per cent in Monday’s commerce forward of the corporate’s September quarter outcomes which might be scheduled for Wednesday, November 22. The outcomes could be adopted by a Conference Call at 5 pm IST.
In a submitting to BSE on Friday, Honasa Consumer stated a gathering of the board of administrators of the corporate is scheduled to be held on Wednesday to think about, approve and tackle document the unaudited standalone and consolidated monetary outcomes of the corporate for the quarter and half yr ended September 30 together with restricted evaluation stories to be issued by the statutory auditor of the corporate.
Honasa Consumer stated the buying and selling window for dealing within the securities of the corporate that was closed for all designated individuals from November 7, 2023, would proceed to stay closed until completion of 48 hours after the monetary outcomes are uploaded on-line on the portal of the Stock Exchanges.
Honasa Consumer, based by Varun and Ghazal Alagh, presents child care, physique care, face care, color cosmetics, hair care and fragrances. It additionally owns an expert salon chain ‘BBlunt Salons’ that dietary supplements its product portfolio.
What Analysts Say?
“Given a lack of history and our understanding of seasonality, we forecast a 20% YoY growth in 2Q with slight QoQ margin improvement. We do note that ERP implementation in the base has boosted YoY growth in 1QFY24 and 1HFY24 revenue growth should still be c30%,” Jefferies analyst Vivek Maheshwari stated.
Jefferies India’s initiation of protection, giving the inventory a excessive conviction purchase score and revising its goal value to Rs 520 per share.
Jefferies predicts a formidable 57% development for Honasa Consumer within the subsequent three years. Despite acknowledging potential challenges corresponding to robust competitors, M&A, and gradual model growth, the brokerage stays optimistic in regards to the firm’s prospects. It anticipates double-digit development within the BPC (Beauty and Personal Care) section, secure on-line gross sales, and foresees a optimistic trajectory for the corporate.
Highlighting Honasa Consumer’s distinctive strengths, Jefferies notes the corporate’s emphasis on rising traits, with 25-50 p.c of annual income generated from new merchandise. The millennial-centered strategy, centered on content material and group, units the corporate aside.
Jefferies additionally factors out that offline channels provide larger margins in comparison with on-line, with Honasa Consumer’s manufacturers obtainable in 150,000 common commerce shops and 31 merchandise commerce chains.
However, regardless of optimistic market sentiment, Honasa Consumer reported a internet lack of Rs 150.9 crore for the yr ending March 2023. This loss was attributed to impairment loss on goodwill and different intangible property, in distinction to the Rs 14.4 crore revenue within the earlier fiscal yr.
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