Honasa Consumer, the owner of the beauty and personal care brand Mamaearth, saw its stock rise 10% to Rs 387 a share on November 23 after the firm reported strong Q2 financial results, with net profit more than doubling to Rs 30 crore. 

Following the release of its second-quarter results, Honasa Consumer received positive feedback from Jefferies, which assigned the company a 'buy' recommendation. Jefferies has set a share price objective of Rs 530 on the stock, implying a 50% increase from the previous close of Rs 352.

Jefferies has also increased its EPS expectations for Honasa Consumer shares by 5-6 percent.

While Mamaearth's growth slowed from the fiscal first quarter, Jefferies emphasized Honasa Consumer's financial strength. The quarter-on-quarter slowdown was owing to an ERP switch, but the true image of the company's performance is represented in the H1 increase of more than 35%, according to Jefferies.

The new brands under the Honasa Consumer umbrella are driving this growth, with Dr Sheth recently being the fourth brand to cross Rs 150 crore in Annual Recurring Revenue (ARR). Mamaearth, Honasa's flagship brand, grew by double digits in the first half of the year.

Honasa Consumer's strong outlook is bolstered by management's confidence in both growth and margins. Despite the difficulties encountered in the second quarter, the company remains hopeful about its future, and the new brands are allegedly scaling up well.