Honasa Consumer, the recently-listed parent entity of the D2C beauty and personal care startup Mamaearth, is likely to be included in the MSCI Smallcap index, according to Nuvama Alternative & Quantitative Research.
The brokerage has reportedly identified the stock as a strong candidate for inclusion in the index, alongside IREDA, Cello World, and Signature Global. According to a Moneycontrol report, Nuvama has highlighted Jaiprakash Associates, Protean e-gov, Swan Energy, J Kumar Infraprojects, and RattanIndia Power as potential additions to the MSCI Smallcap index. These stocks have all experienced significant rallies of 10-100% in the last three months, resulting in their free float-adjusted market capitalization meeting the criteria for inclusion.
Mamaearth had a subdued entry into the stock market in November, but the stock has surged by 37% since its debut.
Continue Exploring: Mamaearth marks its entry on NSE with nearly 2% premium debut
The official announcement for the upcoming MSCI index rejig is scheduled for February 13, with the adjustments set to happen on February 29.
In the prior adjustments made in November, One97 Communications, the parent company of Paytm, was included among the nine stocks incorporated into the MSCI Global Standard Index.
Presently, Nuvama envisions the potential inclusion of Nykaa‘s parent company, FSN E-Commerce Ventures, as well as entities such as Canara Bank, Mankind Pharma, Bosch, and Vodafone Idea, in the MSCI Standard index, provided they experience a surge ranging from 8% to 20%.
Meanwhile, Nuvama has indicated that if some names miss out on inclusion in the MSCI Global Standard Index in February, there is a possibility that they could be added during the May 2024 review.
Nuvama’s analyst, Abhilash Pagaria, highlighted that India presently commands a 16.9% weight in the MSCI EM Index. He anticipates this figure to surpass 20% by early to mid-2024, attributing it to the current momentum in the domestic market and its outperformance compared to other emerging markets.
Financial Highlights for Nykaa and Mamaearth in 2023:
In 2023, Nykaa saw a growth of more than 12%, and its shares are presently valued at INR 173.4 on the BSE. Meanwhile, Mamaearth is currently trading at INR 444.4.
