Damanis entry to tone up Kaya’s prospect

Kaya, the provider of skincare, haircare, and beauty solutions, shares are locked at 5% upper limit to Rs 111.05 each on the bourses owing to media report that suggests Billionaire Radhakrishnan Damani buying stake in the company. Derive Investments, promoted by Damani, has acquired 95,032 shares or 0.73% stake at Rs 103.59 per share.

Damani investment arm buying stake in Kaya should help soothe nerves of other investors, particularly retail investors, following the dismal performance on the bourses. Kaya shareholders have had a rough ride in the last three year. Sadly for them, the share price is down 59% in that time.

This could be related to the recent financial results. In the last three years, Kaya saw its revenue grow by 0.6% per year, compound. That’s not a very high growth rate considering it doesn’t make profits.
Kaya hopes to turn the fortune in its favour as the need for having perfect skin and hair as seen in the Middle East and Korea catches with India’s consumers. Further, women having higher disposable incomes and the ability to decide for themselves, these services will both expand and explode in India.

Kaya was founded in 2003 by Harsh Mariwala, the owner of parachute coconut oil maker Marico Industries.
The company increased its offerings by launching Kaya Youth O2 range which includes face cream, face wash, mi-cellar water and face wipes.
Harsh and Rajendra Mariwala both invested Rs 7 crore each last December to fund Kaya’s production enhancing activity.

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