Mamaearth Shares Jump 5% To Hit A Fresh All-Time High At INR 546.5

Honasa Fined By J&K Authority Over Discrepancy On Product Price

SUMMARY

The stock has surged over 60% from its listing price and is up over 27% year to date

With Honasa hitting a new lifetime high on Tuesday, the company’s valuation leaped to nearly $2.1 Bn

The share price of the Mamaearth parent have been on an uptrend since NCLT approved the scheme of amalgamation involving Just4Kids Services, Fusion Cosmeceutics and Honasa

Shares of Mamaearth parent Honasa Consumer jumped over 5% in the early trading hours on Tuesday (September 10) to reach an all-time high of INR 546.5 apiece on the BSE.

The surge in the stock’s price came on the back of heavy trading volumes. More than 24 Lakh shares of Mamaearth changed hands on the BSE and the NSE today.

However, the stock pared some of the gains and ended Tuesday’s trading session 4.2% higher at INR 541.45 apiece on the BSE.

With the stock hitting a new lifetime high, the company’s valuation leaped to nearly $2.1 Bn. At the end of Tuesday’s trade, Mamaearth was valued at INR 17,587.60 Cr (about $2.094 Bn).

The stock has given bumper returns to investors since its Dalal Street debut in November last year. It has surged over 60% from its listing price of INR 324 on the BSE and is up over 27% year to date.

Mamaearth shares have been on an uptrend since the Chandigarh bench of the National Company Law Tribunal (NCLT) approved the scheme of amalgamation involving Just4Kids Services Private Limited, Fusion Cosmeceutics Private Limited and Honasa Consumer.

Fusion Cosmeceutics operates premium skincare brand Dr Sheth’s. In 2022, Mamaearth acquired a majority stake in Dr Sheth’s. More recently, it acquired the remaining 34.51% stake for INR 30 Cr.

On the other hand, Just4Kids is the parent company of Momspresso, offering parenting tips and pregnancy advice to mothers across languages, including English, Hindi, and eight other regional languages.

Momspresso was Mamaearth’s first acquisition for INR 167.9 Cr. Ahead of its IPO, Momspresso’s website was pulled down and it still remains inaccessible.

Earlier this year, Honasa obtained the consent of its board for merging Just4Kids and Fusion Cosmeceutics with itself. However, the NCLT is yet to greenlight the merger plan.

The company’s strong financial performance has also fuelled the bull run. Honasa posted a profit after tax (PAT) of INR 40.2 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25), up almost 63% from INR 24.7 Cr in the year-ago quarter.

Revenue from operations during the quarter under review jumped 19.3% on a year-on-year (YoY) basis and 17.3% sequentially to increase to INR 554 Cr.