Post by : Badri Ariffin

On Thursday, Honasa Consumer's shares soared sharply following the company's return to profitability for the July-September quarter. The stock started with a 6.36% increase, reaching an intraday peak of Rs 308.20 before stabilizing around Rs 295 on the NSE by mid-morning.

The FMCG entity, famed for brands like Mamaearth and The Derma Co, disclosed a consolidated net profit of Rs 39.22 crore, a remarkable recovery from a Rs 18.57 crore loss experienced in the same quarter last year.

Revenue from operations surged by 16.5%, accumulating to Rs 538.06 crore, up from Rs 461.82 crore the previous year. With additional income, total revenue reached Rs 558.20 crore, reflecting a 15.8% rise, while total expenses saw a slight dip to Rs 505.45 crore.

Over 75% of the total revenue was driven by the company’s key categories, illustrating the success of its focused approach. Volume growth remained strong, with a 16.7% rise in UVG, indicating consistent consumer demand and robust core business performance.

Market sentiments were generally positive but varied. Jefferies reaffirmed a Buy recommendation with a target of Rs 450, emphasizing volume-led growth and margin enhancements. Conversely, HSBC issued a Reduce rating at Rs 264, pointing out moderate revenue increases while noting higher margins led to minor profit upgrades.

This performance underscores a significant recovery for Honasa Consumer, showcasing resilience within the FMCG landscape and ongoing consumer interest in wellness and personal care products.

#Global News