Mamaearth parent stock jumps 12% ahead of first quarterly report after IPO

Photo credit: Mamaearth

Shares of India-based Honasa Consumer, the parent company of beauty and skincare brand Mamaearth, climbed as much as 12% today as the tech company gears up to report its quarterly results on Wednesday, the first time it will do so following its listing.

Honasa’s shares traded at 371.6 rupees (US$4.46) at the time of writing. It priced its IPO at US$3.96 per share during its debut on the National Stock Exchange of India earlier this month.

The jump today marks a recovery from last week, when the company’s stock had fallen over 5% from its listing price.

In a recent note, global brokerage firm Jefferies predicted a 27% revenue growth for Honasa in the next three years. It also gave the direct-to-consumer company a “buy” rating.

The note pointed out that Honasa has been able to transform itself into a house of brands, with its newer offerings contributing 33% of its overall revenue. The company also now derives a third of its revenue from its offline operations, Jefferies said.

Aside from Mamaearth, Honasa owns five other beauty and personal care brands: The Derma Co, Aqualogica, Dr Sheth’s, Ayuga, and BBlunt.

Founded in 2016 by husband-and-wife duo Varun and Ghazal Alagh, Mamaearth offers natural and toxin-free personal care products. It says that it has over 2.5 million customers across India.

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Currency converted from Indian rupee to US dollar: US$1 = 83.26 rupees.