Mamaearth parent Honasa Consumer share zooms 11%, up 35% in 2 days

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.