Last updated: Nov 20, 2023 2:48 PM IST
Shares of newly listed Honasa Consumer, which operates Mamaearth and other beauty and personal care brands, rose nearly 11 percent in Monday’s trading ahead of the company’s September quarter results scheduled for Wednesday November 22. The results would be followed by a Teleconference at 5:00 PM IST.
In a filing with BSE on Friday, Honasa Consumer said a meeting of the company’s board of directors will be held on Wednesday to consider, approve the company’s unaudited, standalone and consolidated financial results for the quarter and capture. half year ending September 30, together with limited assessment reports to be issued by the company’s auditor.
Honasa Consumer said the trading window for dealing in the company’s securities, which was closed to all designated persons from November 7, 2023, would remain closed until 48 hours after the financial results are uploaded online on the Stock’s portal. Exchanges.
Founded by Varun and Ghazal Alagh, Honasa Consumer offers baby care, body care, facial care, color cosmetics, hair care and fragrances. It also owns a professional salon chain ‘BBlunt Salons’ which complements its product portfolio.
What analysts say?
“Given a lack of history and our understanding of seasonality, we forecast 20% year-over-year growth in the second quarter, with slight improvement in margin quarter-over-quarter. We note that ERP implementation fundamentally drove year-on-year growth in Q1 2024 and revenue growth in H1 2024 should still be around 30%,” said Jefferies analyst Vivek Maheshwari.
The initiation of coverage by Jefferies India, which gave the stock a high buy rating and revised the target price to Rs 520 per share.
Jefferies predicts impressive 57% growth for Honasa Consumer over the next three years. Despite recognizing potential challenges such as intense competition, mergers and acquisitions and slow brand expansion, the brokerage remains optimistic about the company’s prospects. It expects double-digit growth in the BPC (Beauty and Personal Care) segment, stable online sales, and foresees a positive trajectory for the company.
Highlighting Honasa Consumer’s unique strengths, Jefferies notes the company’s emphasis on emerging trends, with 25-50 percent of annual sales generated from new products. The company’s millennial-focused approach, which focuses on content and community, sets the company apart.
Jefferies also points out that offline channels offer higher margins compared to online, with Honasa Consumer brands available in 150,000 general retail outlets and 31 retail chains.
However, despite the positive market sentiment, Honasa Consumer reported a net loss of Rs 150.9 crore for the year ended March 2023. This loss was attributed to impairment losses on goodwill and other intangible assets, as against the profit of Rs 14.4 crore in the previous fiscal year. year.
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