Stocks of Honasa Consumer, the parent firm of Mamaearth, surged by 10 per cent, hitting the upper circuit after reaching a record high of Rs 490.20 in the Monday trading session.
This movement followed the exchange of 32.60 lakh shares, accounting for 1 per cent of the firm, during a block deal. The block deal was executed with a floor price of Rs 437, indicating an order value of Rs 142 crore.
The stock eventually settled at Rs 473.45, reflecting a gain of 6.24 per cent on the National Stock Exchange (NSE).
A month earlier, Fireside Ventures had also sold a 2 per cent stake in the company in another block deal, fetching Rs 230 crore.
Meanwhile, brokerage firm Jefferies maintained its ‘buy’ recommendation on the shares and raised its target price to Rs 530. Additionally, the brokerage increased its earnings per share (EPS) projections by 5 to 6 per cent.
Furthermore, the brokerage replaced Marico in its model portfolio with Honasa stocks. According to the brokerage firm, the company is perceived to be on a ‘strong growth trajectory, achieving over 30 percent revenue growth while maintaining consistent margin expansion.’
