Mamaearth's parent company Honasa Consumer share price jumped 11 percent on the November 24 afternoon, extending the rally to the second day. The share has gained 35 percent in the last two days after Jefferies retained the "buy" call on the stock and raised the target price while adding the personal care firm to its model portfolio.
At 1.16 pm, the stock was trading at Rs 471.25 up by 11.21 percent. Earlier this week, Honasa Consumer a 21 percent growth in revenue and a doubling of net profit at Rs 30 crore in the September quarter.
In a note on November 23, Jefferies said it added Honasa to its model portfolio replacing Marico. The company was on a “strong growth trajectory, delivering 30%+ revenue growth with steady margin expansion”, it said. The company’s focus was on premium customers and would be unaffected by a slowdown and inflation.
The brokerage reiterated its "buy" rating on Mamaearth, raising the target price to Rs 530. The brokerage also increased its EPS estimates by 5-6 percent.
Also read: Mamaearth up 28% since listing, Jefferies ups target after Q2 show
According to CNBC-TV18 data, only 23.5 percent, or 7.56 crore shares, out of 32.17 crore outstanding of the company are available for trading. As many as 1.18 crore shares are locked for sale until December 2023 and January 2024. There is another 21 crore shares which are locked for sale until May 2025.
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