Honasa Consumer shares jump 10% after projecting another robust quarterly performance in Q2


Shares of Honasa Consumer Ltd. gained as much as 10% on Tuesday, October 6, in response to its second quarter business update, where the company guided for the quarter to be another robust one. This is the second straight day for the stock.

In its exchange filing, the company said that the second quarter is expected to be another robust quarter for them, building on the momentum established during the June quarter.

Net Sales Value (NSV) during the quarter is expected to grow in the early-thirties on a year-on-year basis, underpinned by broad-based traction in Honasa’s focus categories across brands.

Mamaearth, Honasa’s largest brand, has sustained its growth momentum over the last few quarters and is expected to deliver high-teens year-on-year growth in terms of Net Sales Value during the quarter. This will be supported by rising brand affinity and a widening offline footprint.

The company’s younger brands continue to gain scale led by strong traction and are expected to accelerate their year-on-year growth to around the mid-forties.

Honasa Consumer said that the offline segment continues to lead growth, with General Trade and Modern Trade, both expected to post strong growth, backed by a deeper direct distribution in General Trade and sharper execution at the point of sale. The online segment is expected to see continued growth momentum during the quarter.

On the profitability front, Honasa is expected to deliver on the country’s goal of EBITDA margin improvement, and we expect the business to deliver early double-digit operating margin profile during the quarter, along with strong year-on-year gains during the quarter.Shares of Honasa Consumer are trading with gains of 9.5% on Tuesday at ₹483.95. The stock is up 70% so far this year.



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