Brainbees Solutions shares jump 14% but still 39% lower YTD; analysts weigh in

Shares of Brainbees Solutions Ltd, parent of baby products retailer FirstCry, rose sharply on Friday after the GST Council slashed tax rates on several everyday items, including baby care, personal care and beauty products.

The Council approved a uniform 5 per cent GST rate on essentials such as milk products, talcum powder, shampoo and toothpaste, down from the earlier 12–18 per cent slabs.

On the back of this development, the stock jumped 15.85 per cent to an intraday high of Rs 407.80, before settling 13.54 per cent higher at Rs 399.90. However, despite the rebound, the counter is still down 38.50 per cent on a year-to-date (YTD) basis.

Technically, analysts see support for the stock in the Rs 354–370 range, while a decisive close above Rs 400 is needed to unlock further upside momentum.

"The stock has experienced a significant surge, indicating a bullish outlook. However, based on historical trends, consistent buying will be essential for maintaining this momentum and breaking out of its broader consolidation zone. Support is expected around Rs 370-360 levels, while a sustained move above Rs 400 could pave the way for targets of Rs 420, followed by Rs 450 in the near term," said Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One.

"FirstCry stock price is bullish on daily charts with strong support at Rs 354. A daily close above the resistance of Rs 400 could lead to an upside target of Rs 442 in the near term," noted Sebi-registered analyst AR Ramachandran.

The stock traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMAs) but lower than the 200-day simple moving average (SMA). Its 14-day relative strength index (RSI) came at 47.40. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a price-to-earnings (P/E) ratio of 334.04 against a price-to-book (P/B) value of 3.56. Earnings per share (EPS) stood at 1.20 with a return on equity (RoE) of 1.07. According to Trendlyne data, Brainbees has a one-year beta of 1.4, indicating low volatility.

Around 18.10 lakh shares chnaged hands during the session on BSE, much below the two-week average volume of 2.41 lakh shares. Turnover on the counter stood at Rs 71.50 crore, pushing the company's market capitalisation (m-cap) to Rs 20,917.71 crore.

Brainbees Solutions runs multi-channel platforms for mothers, babies and kids, providing a diverse portfolio of products from top domestic and international brands, along with its own private labels.