Honasa Shares Hit All-Time Low Ahead Of Q3 Results

Honasa Shares Slip 6% During Morning Trade

SUMMARY

Today’s stock dip was in continuation of its last 5 trading sessions ending in the red

However, recovering from its losses, the stock was trading 3.36% higher at INR 207.65 at 12:46 PM

While Awfis’ shares have delivered a negative return of 13.90% over the last month at the current market price, it has lost 52.63% over the last year

Shares of Mamaearth parent Honasa Consumer slumped 1.8% to record an all-time low of INR 197.15 on the BSE today (February 12).

This also marks a fresh 52-week low figure for the stock, ahead of its third-quarter financial results.

Today’s stock dip was in continuation of its last 5 trading sessions ending in the red. However, recovering from its losses, the stock was trading 3.36% higher at INR 207.65 at 12:46 PM.

At this time, the company’s market capitalisation declined to INR 6,722.23 Cr with more than 3.6 Lakh trade volume.

The stock has performed badly in the short and long-term periods. While Awfis’ shares have delivered a negative return of 13.90% over the last month at the current market price, it has lost 52.63% over the last year.

It is pertinent to note that the conference call in respect of the unaudited financial results of the company for Q3 FY25 is scheduled for today at 05:30 PM.

In its Q2 FY25 result, Honasa slipped into the red, posting a consolidated net loss of INR 18.6 Cr. The company had reported a net profit of INR 29.4 Cr in the year-ago quarter and INR 40.3 Cr in the preceding June quarter.

Its 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.

The company has been doubling down on its workforce through ESOPs and executive-level appointments. It has allotted 45,663 stock options under its employee stock option plan (ESOP).

Recently, it appointed Lokesh Chhaparwal as Senior Vice President – Technology and Engineering. However, its Chief Business Officer (CBO) resigned before this appointment.

Looking at Honasa’s broader trajectory, the company has faced challenges over the past year, struggling with offline distribution and losing its unicorn status. Recently, Emkay Research downgraded Honasa to a ‘sell’ rating from ‘buy’ and assigned a price target (PT) of INR 300.

Of the 12 analysts covering the stock, 4 had a ‘sell’ rating, while 6 recommended a ‘buy’ as of December 2024.

Despite these challenges, ICICI Prudential has increased its stake in the company to 7.36% in the quarter ending December, up from 6.04% in the September quarter.