Mamaearth shares jump 14%, hit all-time high. Here’s why

Shares of Honasa Consumer, the parent company of Mamaearth, surged 14% on Monday, reaching an all-time high of Rs 535 during intra-day trade on the BSE. The stock’s rally followed the company’s announcement of a positive development regarding its ongoing amalgamation process.

The surge in buying interest came after the company received an order from the National Company Law Tribunal (NCLT), Chandigarh, concerning the proposed scheme of amalgamation between its wholly-owned subsidiaries—Just4Kids Services Private Limited and Fusion Cosmeceutics Private Limited—and Honasa Consumer. The NCLT dispensed with shareholder meetings and directed Honasa to notify relevant regulatory authorities.

In addition, Honasa Consumer launched its Kerala Thaali Hair Care Range last Friday. The company described the range as a tribute to Kerala’s cultural heritage, designed to provide a holistic hair care experience with exceptional strength and shine.

At 12:44 am, the scrip was trading 12.3% higher at Rs 527.2 on BSE. On a year-to-date basis, it has surged 23%.

In Q1 FY25, the company reported a 63% year-on-year (YoY) jump in its consolidated net profit to Rs 40 crore versus Rs 24 crore reported in the corresponding quarter of the last financial year. The revenue from operations for the April-June quarter stood at Rs 554 crore, higher by 19% over Rs 464 crore posted in the year-ago period.Honasa registered product business growth of 20.3% with an underlying volume growth (UVG) of 25.2%.The earnings before interest, taxes, depreciation and amortisation (EBITDA) margin expanded by 201 bps YoY to 8.3%, resulting in an EBITDA of Rs 46 crore.In technical terms, the relative strength index (RSI) of the stock is currently at 51.7. An RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. The stock is trading higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day simple moving averages (SMAs).

Honasa Consumer Limited is a leading digital-first beauty and personal care company with a diverse portfolio of six brands.

The shares of the company ended at Rs 507.40 at close of trade, up 8.14% over its previous close.

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