Jefferies Initiates Mamaearth Coverage With A "High-Conviction" Purchase, And A Rs 520 Target Price

Jefferies started a media story on Honasa Consumer, the company that owns the Mamaearth brand. With regard to the stock, the overseas brokerage firm has initiated a high conviction 'buy'. The share price objective is fixed at Rs 520.

According to Jefferies, growth will be 27 per cent over the following three years. The company's main risks are fierce competition from top FMCG businesses, forceful mergers and acquisitions, and a failure to scale up the newer brands, according to a report by Moneycontrol.

The company's beauty and personal care (BPC) division is anticipated to rise in double digits, according to Jefferies, with consistent gains anticipated for the internet channel.

According to the brokerage business, Honasa Consumer has established a house of brand architecture with six brand portfolios. With revenues of Rs 1200 crore in FY23, the company ranks among India's top BPC brands. According to Jefferies, several Honasa Consumer brands, such as The DermaCo and Aqualogica, have grown to a reasonable size, whereas Ayuga BBlunt and Dr. Sheth are only getting started.

Meanwhile, On November 10, the shares of Honasa Consumer, the company that owns Mamaearth, closed at a price of Rs 323.50 after plummeting during early trading. The stock is now trading almost at par with its IPO price of Rs 324. The Mamaearth IPO made its debut just three days ago.

The Jefferies Group LLC is a worldwide financial services company and investment bank headquartered in New York City. They provide a variety of services to their clients, such as capital markets and financial advisory services, institutional brokerage, securities research, and asset management.