Honasa Extends Loss For Third Straight Session, Shares Drop 5%

Shares of Mamaearth parent Honasa Consumer dropped nearly 5% to INR 208.70 apiece during the intraday session on the BSE today (February 7).

The stock was down 2% at INR 215.00 per share, as of 13:52 PM, on the BSE, compared to its previous close of INR 219.40 yesterday (February 6).

The market capitalisation of the company currently stands at INR 6,999.96 Cr (nearly $800.3 Mn).

Honasa’s shares are set for its hat trick session in red, if current loss holds.

A week ago, the company marked its lowest ever after it reached INR 205.05 apiece on January 31, even though it recovered some of its loss and ended the session in green at INR 220.55 per share.

It is observed that the shares of the Mamaearth owner fell nearly 20% a day after it reported its preceding quarter’s results.

Honasa Consumer posted a consolidated net loss of INR 18.6 Cr, in the second quarter of FY25, while it reported a net profit of INR 29.4 Cr in the year-ago quarter. 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.

Notably, Emkay Research downgraded Honasa to ‘sell’ from a ‘buy’ rating and gave a PT of INR 300. Furthermore, of the 12 analysts covering the stock, 4 had a ‘sell’ rating as of December 2024, and 6 recommended ‘buy’.

In the past 52 weeks, the stock has lost about 49%, as of its last close.

In contrast, the stock saw a surge of 7% to INR 235.70 during the intraday trading on the BSE on February 1, after ICICI Prudential raised its stake in the company.

To note, of the last 5 trading sessions, the company has ended three sessions in red.

Updated at 02:08 PM