Mama Earth's share price hit an upper circuit limit of 20 per cent on Thursday after the BPC (Beauty and personal care) brand reported a robust Q2 earnings result for the September quarter.
Considering the initial bear run in the stock, this surge marks a strong reversal, indicating renewed investor confidence and a positive shift in the stock's trajectory.
The company reported a nearly doubled profit of Rs 29.44 crore for the quarter under review. Within the same period, the firm also witnessed a notable 21 per cent surge in operational revenue, amounting to Rs 496 crore.
The first half of FY24 witnessed a 33 per cent increase in revenue for the BPC unicorn, contrasting with the FMCG industry's median growth of 9 per cent. Varun Alagh, CEO and cofounder said, "Honasa has been able to deliver market-beating growths and constantly improve the profitability portfolio of the company. Our business has grown by 33 per cent Y-o-Y in H1 FY24 which is 3.8 times the median growth of FMCG companies in India."
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The company's shares also experienced a boost following an upgrade by brokerage firm Jefferies. With a 'buy' rating, the brokerage has established a target price of Rs 530 for the stock. It has raised its earnings per share (EPS) estimates for Honasa Consumer stock by 5 per cent-6 per cent.
Since its listing date, November 7, the shares of Honasa Consumer Ltd (parent company of mamaearth) have soared to more than 25 per cent or 86 points on the National Stock Exchange.
