Honasa Consumer, the parent company of Mamaearth, saw its shares soar by 10%, reaching the upper circuit limit of INR 251.55 on November 28.
Honasa shares uptick aligns with FMCG 0.86% growth
This spike in the company’s shares was in line with a 0.86% positive upsurge in the fast-moving consumer goods (FMCG) segment. The stock opened the day’s trading 3.14% up at INR 235.90 against the previous close of INR 228.70.
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As many as 17.59 lakh shares of Honasa traded hands on November 28. The company’s market capitalization stood at INR 8,170.95 crore. However, it’s worth noting that the company’s stock has mostly maintained a downward trajectory after it slipped into the red in the September quarter of the financial year 2024-25 (Q2 FY25), posting a consolidated net loss of INR 18.6 crore.
Meanwhile, Brokerage firm Emkay has also reflected its pessimistic stance on the stock, double downgrading Honasa’s shares to “sell” from its earlier rating of “buy” and cutting its price target by half to INR 300 from INR 600 earlier. Notably, seven out of Honasa’s last 10 trading sessions have ended in the red. On the year-to-date (YTD) basis, its stock has given a negative return of 40.99% to its investors.
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Mamaearth suffers loss of INR 18.6 Cr in Q2
In the September quarter of financial year 2024, Mamaearth reported a consolidated net loss of INR 18.6 crore, attributing the loss and fall in sales to its ongoing transition from a super-stockist-led model to a direct distributor model. Honasa’s top line also took a hit as revenue from operations declined nearly 7% to INR 461.8 crore during the quarter under review from INR 496.1 crore in Q2 FY24. Its total expenses rose 9% to INR 506.2 crore during the quarter under review from INR 464 crore in the year-ago quarter.
