Honasa Consumer Share Price Soars Over 13% As Q1 Profit Rises

Mamaearth parent Honasa Consumer Ltd.'s shares rose over 13% during trade so far after the company's net profit rose 2.7% for the first quarter.

The skincare provider's bottom line climbed to Rs 41.3 crore during the April-June period, against Rs 40.3 crore for the same period last year, according to the results posted on Tuesday.

During the first quarter, Mamaearth continued to grow in double digit in focused sections including e-commerce, modern trade, general trade. Its distribution remained positive fueled by 50% year-on-year rise in its direct distribution strategy.

The company's offline stores contributed around 15% to the overall growth while it is widening its reach with more than 9,000 general trade outlets along with 3,400 chemist stores.

Mamaearth stock rose as much as 13.5% during trade so far to Rs 304.7 apiece on the NSE. It was trading 11.36% higher at Rs 299.9 apiece, compared to an 0.39% advance in the benchmark Nifty 50 as of 9:54 a.m.

It has declined 36.02% in the last 12 months and risen 16.59% on a year-to-date basis. The total traded volume so far in the day stood at 107 times its 30-day average. The relative strength index was at 37.9.

Seven out of the 13 analysts tracking the company have a 'buy' rating on the stock, two recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 304.5, implying an upside of 1.1%.