Mamaearth, a popular Indian beauty and personal care brand, saw its share price surge 20% to lock at the upper circuit limit of ₹422.50 on the BSE on November 23, 2023. This impressive jump followed the company’s announcement of a net profit of ₹30 crore in Q2FY24, a significant increase from ₹15.2 crore in the same period last year.
This strong financial performance was driven by a 21% growth in revenue from operations, which reached ₹496 crore. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) also grew by 53%, reaching ₹40 crore.
Mamaearth’s growth is attributed to the strong demand for its skincare and haircare products, which are known for their natural and organic ingredients. The company has been expanding its product portfolio and strengthening its brand presence, which is contributing to its financial success.
Jefferies, a leading brokerage firm, has taken note of Mamaearth’s impressive growth trajectory and has raised its target price for the company’s stock to ₹530. The brokerage firm believes that Mamaearth is well-positioned to benefit from the growing demand for natural and organic personal care products in India.
Mamaearth’s Q2 Highlights
- Net profit doubles to ₹30 crore
- Revenue from operations grows 21% to ₹496 crore
- EBITDA grows 53% to ₹40 crore
Strong Growth Prospects
Jefferies is optimistic about Mamaearth’s future prospects, citing the following factors:
- Growing demand for natural and organic personal care products in India
- Mamaearth’s strong brand presence
- Expanding product portfolio
- Efficient supply chain management
The brokerage firm believes that Mamaearth’s share price has the potential to reach ₹530 in the near future.
Positive News for Mamaearth
Mamaearth’s strong Q2 results and Jefferies’ positive outlook are positive developments for the company. These developments are likely to attract more investors to the stock, which could further boost its share price.
