Honasa Consumer Shares Jump 10% To Hit Upper Circuit

Shares of Mamaearth’s parent Honasa Consumer surged as much as 10% to hit the upper circuit at INR 251.55 today (November 28). 

This spike in the company’s shares was in tandem with a 0.86% or 178.31 points positive upsurge in the fast moving consumer goods (FMCG) segment at 21,383.03 at 10:11 AM. 

The stock opened the day’s trading 3.14% up at INR 235.90 against the previous close of INR 228.70. 

As many as 17.59 Lakh shares of Honasa traded hands today. The company’s market capitalisation stood at INR 8,170.95 Cr till the stock reached its upper circuit. 

It is pertinent to note 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 Cr. 

The shares have already reached their all-time low mark twice this month on November 19 and November 22.  

Brokerage firm Emkay 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 YTD basis, its stock has given a negative return of 40.99% to its investors. 

Even with today’s upper circuit hit, its shares are 54.01% below its 52-week high mark of INR 547.00. 

While Mamaearth reported a consolidated net loss of INR 18.6 Cr, the D2C major attributed the loss and fall in sales to its ongoing transition from 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 Cr during the quarter under review from INR 496.1 Cr in Q2 FY24. 

Its total expenses rose 9% to INR 506.2 Cr during the quarter under review from INR 464 Cr in the year-ago quarter.

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