New Delhi: Mamaearth’s market performance soared to new heights as its share price surged by an impressive 20% on Thursday, hitting the upper circuit limit. This remarkable feat followed the release of the company’s Q2FY24 financial results, marking its inaugural quarterly report post-listing on the stock exchanges. The parent company, Honasa Consumer, reported a stellar net profit of ₹30 crores, doubling from the previous year, and witnessed a 21% growth in revenue, totalling ₹496 crores.
In the competitive world of direct-to-consumer (D2C) unicorns, Mamaearth outshone its peers by achieving a remarkable 33% revenue growth in the first half of FY24, compared to the FMCG industry’s median growth of 9%. Varun Alagh, Chairman and CEO, expressed pride in the company’s exceptional growth, emphasizing a 3.8 times higher growth rate than the industry average.
Despite a brief dip of over 4% in Honasa Consumer shares on the eve of the Q2 results announcement, the stock made a strong recovery on Thursday, reaching a new pinnacle. Notably, Honasa Consumer’s offline distribution witnessed a substantial 47% YoY increase, reaching 1,65,937 outlets.
Since its debut on Dalal Street on November 7, Honasa Consumer has consistently displayed resilience and market appeal. The stock, which was initially listed at ₹330 (a 2% premium over the issue price of ₹324 apiece on the NSE), has maintained its momentum, with shares still locked at the upper circuit limit of 20%, trading at ₹422.50 apiece on the BSE as of 2:35 pm. Investors are undoubtedly keeping a close eye on the promising trajectory of this dynamic consumer goods player.
