Mamaearth shares surge 10% on likely block deal worth Rs 142 crore
Honasa Consumer jumped over 10% to hit their 52-week high of Rs 490 on the NSE on Monday following a block deal where over 32 lakh shares were reported to have changed hands. The floor price of the deal was Rs 437 per share, which is a discount of nearly 2% from the previous close of Rs 445.65. The total transaction value was Rs 142 crore, according to the media reports.
The stock witnessed strong investor interest as nearly 51 lakh shares traded on the NSE around 2:35 pm.
The traded value of the shares stood at Rs 227.14 crore. On BSE too, the stock hit the upper circuit with volumes shooting up 1.67 times around this time.
The stock was listed on November 7, 2023, but fell to its lowest level of Rs 256.30 against the issue price of Rs 324.
It operates six brands – Mamaearth, The Derma Co, Bblunt, Ayuga, Aqualogica, and Dr Sheth. Mamaearth is the flagship brand, bringing in the highest revenue.
The company reported a 93% growth in its net profit to Rs 29.4 crore for the quarter ended September 2023. The same stood at 15.2 crore in the last year period.
Revenue from operations in the second quarter increased 21% to Rs 496 crore against Rs 410 crore in the same quarter of last year. The strong revenue and profit show was driven by volume growth of 27% year-on-year (YoY).
In the same period, Mamaearth achieved an EBITDA of Rs 40 crore, up 53% YoY.
Jefferies had in November initiated a coverage on this stock while recommending a buy for a price target of Rs 520.
«Honasa should report industry-leading growth at 27% over the next 3 years.
