Shares of Kaya, a prominent provider of dermatological solutions, reached a 5-year high of ₹604.25 per share today, hitting the 10% upper circuit limit for the third consecutive trading day. This recent surge has propelled the stock to an 80% gain year-to-date, marking its largest annual increase since its listing in CY15.
The sharp rise in shares commenced following Kaya’s collaboration with consumer goods maker Marico, which involves exclusive sales and marketing responsibilities for Kaya’s portfolio of over 75 science-based personal care products outside of its clinics.
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The collaboration will leverage the established expertise and capabilities of both companies and unlock the untapped growth potential of the brand by enhancing its presence and accessibility across markets and channels, the company said in its exchange filing dated July 03.
Kaya offers an extensive portfolio of dermatologist-recommended products, ranging from daily essentials to specialised solutions for acne, brightening, sun care, anti-aging, and hair care. Kaya’s products are currently available across some of the leading e-commerce marketplaces and 70+ Kaya skin clinics across India.
The Indian customer mindset towards wellness and aesthetics has shifted post COVID, with estimates indicating that 33% of millennials now spend over ₹4,000 monthly on wellness. The wellness and beauty market is expected to flourish among India’s youthful working population, where the median age is 28.
Emerging technologies for treatments, evolving customer needs, and the utilisation of AI technology are poised to drive demand for the health and wealth category.
In response to these demand trends, Kaya introduced advanced haircare solutions in Q4, leveraging diagnostic tools focused on hair growth and reducing hair fall. This initiative resulted in an impressive 18% revenue growth.
Additionally, Kaya launched a state-of-the-art AI-based doctor app utilising clinical data specific to Indian skin for brightening, pigmentation, and acne treatments, garnering positive customer feedback.
During Q4 FY24, Kaya continued its clinic refresh initiative by relocating two clinics, bringing the total relocations for the year to six. The relocated clinics saw an 81% increase in collection over Q4 FY23. Furthermore, Kaya renovated eleven clinics during the year, resulting in a 21% growth in collection over the same period last year, as per the company’s Q4 investor presentation.
Customer acquisition through the Omni Channel route contributed to a 14% increase in customer count over Q4 FY23.
In Q4FY24, standalone revenue from operations stood at ₹53.0 crore, marking a 21% increase from the same period in Q4FY23. However, the company posted a net loss of ₹95.1 crore, primarily due to a one-time expense of ₹90.4 crore related to the impairment of investments and costs associated with the sale in the Middle East.
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