Shares of FirstCry’s parent company, Brainbees Solutions, experienced a notable surge, climbing as much as 5.8% during intraday trading on October 11, reaching INR 723.10. The stock closed the day at INR 718, reflecting a 5.1% increase. This uptick aligns with a broader positive trend in the market, as the Sensex rose by 591.69 points (or 0.73%) to close at 81,973.05, and Nifty gained 0.66%, ending at 25,127.95.
The trading session saw approximately 13.5 lakh shares exchanged, bringing Brainbees Solutions’ market capitalization to around INR 37,277 crore (approximately $4.4 billion). Since its stellar debut on Dalal Street in August, where shares listed at a 40% premium over the issue price of INR 465, the stock has appreciated about 15% from its initial listing price.
Analysts have taken notice of Brainbees Solutions’ performance, with Morgan Stanley initiating coverage with an ‘overweight’ rating and setting a price target of INR 818 per share. They believe that despite the stock’s strong performance since listing, current valuations suggest further upside potential.
Similarly, BofA Securities has also initiated coverage on Brainbees, assigning a ‘buy’ rating with a price target of INR 770. They highlighted that Brainbees is well-positioned in the competitive mother-baby-kids market and is improving its fundamentals across all business segments.
Brainbees Solutions operates FirstCry, which is recognized as a niche online commerce platform for mothers and children’s products. The brand has expanded its reach beyond India into the Middle East and is poised for sustained growth due to India’s relatively high birth rate compared to countries like China and the U.S.
In its financial performance for Q1 FY25, FirstCry reported a consolidated net loss of INR 75.68 crore, down 31% from INR 110.42 crore in the same quarter last year. Operating revenue grew by 10%, reaching INR 1,652.07 crore, up from INR 1,496.93 crore in Q1 FY24.
The combination of positive market sentiment, strong analyst ratings, and improving financial metrics positions Brainbees Solutions favorably for continued growth in the competitive e-commerce landscape. FirstCry shares surged over 5%, crossing the INR 700 mark, amid positive market sentiment and strong analyst ratings for Brainbees Solutions.
