Honasa Consumer Limited IPO Message Board (Page 15)

From rhp
1. Operates under six beauty and personal care brands.
2. 301 sku in 2023, 2x of 2022 across all brands. New sku contributed 56% of rev
3. They do not manufacture any products, they completely rely on 3rd party.!
4. Top 10 products contribute 30% of rev. This is same for past 3 years !
5. Ad expenses is close to 40% of rev for past 3 years. !
6. Online Ecommerce channel drives ~58% of sales. and other is driven by D2C channel. Rev by online channel has 30% commission to ecom places.
Decreasing this ecom mix should be the main goal , that shld results into higher margins for them. Cant see this happening from 3 years.
7. Their acquisitions fusion and Just4kids have faced losses in 2023. For last quarter fusion has been marginally profitable but not the latter.
8. 85 Exclusive brand outlets (as they call EBO)
Havent specifically found the rev driven by these EBO's.

9. Correction, avg rev per EBO is 31lk, avg capex on setting up EBO is 10lk
10. IPO money is used for setting up EBO. They have a target of 44 new EBO per year.
Majority of these are in tier 1 cities, with none in tier 2/3 cities
11. Their salon acquisition bblunt has 10 salons. Avg capex for setting up is 83lk ! Their target is to set up 7 salons each year
12. Acquisition cost for
Just4kids - 167 cr ( they have recorded impairment loss on goodwill about 154 cr, i dont understand what this is :) )
bblunt- 136 cr
fusion -54cr (offers skincare soln)
13. Gross margins 70%, EBITDA margins ~2% for last 2 years
14. Peer comparison doesnt makes sense as other are reputed & long lived brands
15. Bonus in may 2022 in ratio of 1:12899 ( i think shares were face value of 90 hence the ratio, didnt understand the maths)
16. Capital structure
Kunal Bahl & Rohit bansal acquired shares in 2017
Mariwala & Stellaris in 2018
Sofina & Sequoia capital in 2021
Shilpha shetty in 2018 ( now go check if these are completely/partially exiting)

​@UjwalG All among Kunal, Rohit, Mariwala, Sofina, Shilpa are exiting with some stake on the table still after IPO. The respective percentages of stake sale is around 40-86%, with Shilpa keeping only 14% stake in company post IPO and making around 8-9 times gain on her investment, amounting to 50 crores.

The impairment loss in goodwill during acquisition shows the goodwill which was already existing in the books of Just4kids, but due to losses and lesser brand value the fair market value of that goodwill was down by 154 cr.

Before applying better to consider the following points .....
1)Co .sells its products through lady agents , focussing on mammas, offering discounts amounting to even 50%.
2) Due to above reason, products are costly even when reportedly not of extra ordinary quality.
3) Customers are mostly , one time type.
4) Employees are being offered a hefty discount of @ 10%, presumably to cushion them , for the fall.
5)Co. is expert in discounts , so created GM , but not able to sustain it ,and extremely volatile.
6)Financials below average, volatile .
7)Greedily priced
8) Those who are offering shares in OFS , lost hope of progress and exiting , reaping the moolah.
9) Market conditiones are bad.
10).Risk reward ratio is high.If goes below the issue price, share may take very long for recovery.
ETC.
Ponder for awhile before appling.

👍 Good info sir

Sir iski anchor list Ane do sab clear ho jayega ll

सावधान रहें सतर्क रहें
MAMAEARTH IPO i.e. HONASA CONSUMER LIMITED Is coming with an IPO. It has made 14 cr in FY22. And if we believe market rumour that it is coming with 10000 cr market cap then PE RATIO Stands to 714 which is very very high. We all know what happen to NYKAA, POLICY BAZAAR, PAYTM, all are down by 50 % to listing price. AVOID this IPO AND SAVE YOUR HARD EARNED MONEY. ALSO DONT INVEST IN MUTUAL FUNDS THAT INVEST IN THIS TYPE OF COMPANIES

Current Gmp

GMP 7 rs only

​@Admin @ Chittorgarh.com 
Plz. Post FY 23 Results and Q124 Results

2023 results are not published?

To apply 5 lots for long term.

Bhai log digam me nahi aa araha hai, asset achanak 1 sal me badh gai, waise hi net profit jump kar gaya, and borrowing also decrease drastically....
maje ki baat ye hai ke IPO bhi aagaya on current year also....lagta hai...sab kuchh karliya hai IPO ke liye.....and I know after IPO what will be gone...
Completely avoid.....

Mamaearth IPO OFS section details,

Kunal Bahl, Rohit Bansal acquisition cost : 3
Rishabh Mariwala acquisition cost : 6
#ShilpaShetty acquisition cost : 41

All are chipkoing loss making cmpny to retailers at : 308

Mama Shilpa and her husband can produce lots of X-rated movies out of this money which will benefit (some desperate) retail investors.

A question for all : Do you use any Mamaearth products?

Most of their customers are one-time acquired through heavy advertising and hype, Himalaya has much better quality baby product offerings at half the price and also easily available.

People know about it after shark tank. Before that it was in knowledge of very less people.
Still availablity of products is a concern for this company, products are available in limited areas apart from online store. Also packaging of products are not so attractive.

Now will decide based only on GMP basis, should apply or not. Let promotors infuse some money in grey market.

It is a pity that There is no policy regarding fixing of IPO price. Company's are coming with IPO at exorbitant prices. In this IPO, Early investor who put money 5 years back is getting 100 times value. In fact retail investors should be cautious and consider following before investing in IPOs. 1) The company must be in Net profit for at least last 3 years. 2) The PE multiple should not be more than 20 of average EPS of last 3 years. 3) If company is making losses, The pricing should not be more than face value. This company has made huge losses and seeing performance, This is worth face value of Rs. 10/- maximum.

Bhai koi b apne shares list karega to maximum profit ho ye ensure karega. Tumko koi force nhi karta ipo bharne ke liye. Its our own choice. Multibaggers bhi hue hai aur aage b ipo aayenge usme se honge

Mama pure earth ko "MAMU" banane aaya hai.🤣

Employees got 30 discount. Will this list in discount?

Kya iska price band reasonable he??

Price is very high, list hote hi girega buri tarah

Bilkul reasonable nahi hai.

Keep minting!

Already Mama Earth was in the news as high valued ipo. Now after the market carnage, I think the company has timed it's ipo at the wrong time.

Price Band Officially Announced : 308-324

M.cap : 10424.5 cr

No PE For FY23
Expected PE on Forward Earnings of FY24 :
86.8 times

Issue Size : 1701.4 cr
Fresh - 365 cr
OFS - 1336.4 cr

Price Band Advertisement officially to be done tomorrow ( 26th October )
It should be around 345

Price band 308-324

43-45
Good Demand

31-34

Made a low of 12 Today
And Strong Bounce Back after Market Closing

15-16

# Off-Topic but important

Big BREAKDOWN coming in short term in Recently listed stocks like IKIO , Ratnaveer ,
Aeroflex , Ideaforge , RR Kabel , Valiant , Netweb , Cyient DLM , Yatharth , SBFC , Utkarsh , UDS , Yatra , Samhi , SSKL

Only Yatra , Zaggle , JSW INFRA are strong

I would recommend to exit all the above stocks if you are in good profits , Hold for Long term
And Plz. Avoid BOTTOM FISHING

a good question is should we buy these stocks around January sir @newgen consultancy , after they've fallen to near issue or low prices?? or any other time frame ?

Don't wait for such long
Buy Lemon Tree , Share India ,CDSL , Sula vineyards , Dreamfolks at these levels
Don't think about buying it cheaply

200% avoid category.