Honasa Shares Slip 6% During Morning Trade

SUMMARY

With a drop in its share price, the company’s market capitalisation stood at INR 6,634 Cr with more than 3.2 Lakh shares exchanged hands by 12:05 PM

At the current market price, the stock has lost almost 50% in the past one year and in the short term it lost over 8% over the course of the last five days

The stock has ended in the red in three out of the last seven sessions on the BSE, closing the last trading session (February 28) at INR 216.05

Shares of Mamaearth’s parent Honasa Consumer crashed almost 6% to INR 203.45 during the intraday trading session on the BSE today (March 3).

With a drop in its share price, the company’s market capitalisation stood at INR 6,634 Cr with more than 3.2 Lakh shares exchanged hands by 12:05 PM

At the current market price, the stock has lost almost 50% in the past one year and in the short term it lost over 8% over the course of the last five days.

The stock has ended in the red in three out of the last seven sessions on the BSE, closing the last trading session (February 28) at INR 216.05.

Honasa reported a flat profit in the third quarter of fiscal year 2024-25 (Q3 FY25), earlier this month. Its consolidated net profit witnessed a marginal 0.4% increase of INR 26.02 Cr in Q3 FY25 from INR 25.90 Cr in the year-ago quarter.

Sequentially, the company recovered from an INR 18.58 Cr loss. While EBITDA declined 24% YoY to INR 26 Cr, EBITDA margin also contracted to 5% from 7.1% in Q3 FY24.

Notably, the company’s revenue from operations surged in the quarter under consideration by 6% to INR 517.51 Cr from INR 488.22 Cr in Q3 FY24.

Founded in 2016 by the husband-wife duo Varun and Ghazal Alagh, Honasa’s product portfolio comprises six beauty and personal care brands which include Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s.

In its Q3 earnings call, Varun said, “In Q3 FY25, we remained committed to long-term growth, advancing the strategic implementation of Project Neev to strengthen our offline distribution through direct distributors in the top 50 cities… As we scale, our vision remains centered on driving disruptive innovation, deepening offline penetration, and delivering unique value propositions to consumers.”

In January, the company roped in Lokesh Chhaparwal as senior vice president – technology and engineering while its chief business officer (CBO) Zairus Master resigned from his role previously.