Post by : Bianca
Haleem
On Thursday, Honasa Consumer’s shares rose significantly following the announcement of their return to profitability for the July-September quarter. The stock started strong with a 6.36% increase, reaching an intraday peak of Rs 308.20 before stabilizing near Rs 295 on the NSE by mid-morning.
The firm, recognized for its FMCG brands including Mamaearth and The Derma Co, reported a consolidated net profit of Rs 39.22 crore, a remarkable rebound from a loss of Rs 18.57 crore during the same quarter last year.
Revenue from operations grew by 16.5%, totaling Rs 538.06 crore, up from Rs 461.82 crore in last year's Q2. With other income included, total revenue reached Rs 558.20 crore, a 15.8% increase, while total expenses decreased slightly to Rs 505.45 crore.
The key categories significantly contributed to more than 75% of total revenue, underscoring the success of the company's category-first strategy. Volume growth remained strong, with an uptake of 16.7% in UVG, indicating consistent consumer demand and solid core business performance.
Market feedback was generally favorable yet varied. Jefferies maintained a Buy rating with a target price of Rs 450, attributing this to volume-driven growth and margin enhancement. Conversely, HSBC set a Reduce rating at Rs 264, pointing out moderate revenue growth but improved margins resulting in minor profit adjustments.
This financial performance represents a significant recovery for Honasa Consumer, showcasing its resilience in the FMCG sector and ongoing consumer enthusiasm for wellness and personal care items.
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