Stock Market Today: Mamaearth parent Honasa Consumer saw its share price rise more than 8% on Tuesday adding to its gains on Monday post a business update . Mamaearth parent Honasa Consumer had announced that The Derma Co. from Honasa having crosses ₹500 crore per annum run rate . Analysts at Jefferies India Pvt Ltd have termed Honasa Consumer as a high conviction Buy and sees 34% further gains gain.
The Derma Co., a skincare brand supported by active ingredients and owned by Honasa Consumer Limited, on Monday announced that it has reached a noteworthy milestone: an annual revenue rate of ₹500 crore.
Honasa Consumer in the release said that following Mamaearth, it has once again shown the potency of its data-driven, on-trend innovation approach, enabling The Derma Co. to reach this significant milestone.
Meanwhile Jefferies India Pvt Ltd in its report dated 22 January said that the Investors’ reservations about Honasa’s capacity to recognize emerging trends and innovate with urgency & agility should be allayed the The Derma Co. success.
This should also give comfort on the 20% plus growth trajectory for Honasa Consumer despite the probable slowdown in Mamaearth on a larger base.
Further Analysts at Jefferies said that the company’s growth must be compared to that of its traditional FMCG (Fast moving consumer goods) peers, who are probably only going to develop at a half-speed.
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Jefferies analysts retain Buy ratings with high conviction. Their target price of ₹590 for the stock trading at ₹436 indicates more than 35% upside from hereon.
The Derma Co. Launched in 2020, was designed to be an active-based skin care treatment for conditions like pigmentation, dryness, dullness, and acne etc. The product contains important active ingredients including hyaluronic acid, salicylic acid, kojic acid, niacinamide, etc.
Today, The Derma Co. provides a wide range of goods in categories such lip balm, face wash, sunscreen, and skin care. In FY24, Honasa Consumer had sold more than 10 million units of The Derma Co.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
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Published: 23 Apr 2024, 03:44 PM IST