Honasa Shares Stay In The Red, Tank 7% to INR 226.35

Honasa Shares Stay In The Red, Tank 7% After Weak Q3 Results

SUMMARY

Shares of Honasa Consumer declined 7.17% to INR 226.35 during intraday trading today

Trading volume stood at 4.71 lakh shares with market cap at INR 7,449.84 Cr

The D2C major reported a net loss of INR 18.6 Cr in Q2 FY25 against a profit of INR 29.4 Cr in the year-ago quarter

Shares of Mamaearth’s parent Honasa Consumer declined 7.17% during the intraday trading to INR 226.35 apiece on the BSE today (January 27).

At the time of writing (11.54 AM), the stock was trading at INR 227.70, down 6.62% from its previous close. The company’s market capitalisation stood at INR 7,449.84 Cr (around $863 Mn).

Trading volumes stood at 4.71 lakh shares traded by the time of writing. The stock has declined over 58% from its 52-week high of INR 547.00.

On the financial front, Honasa reported a net loss of INR 18.6 Cr in the second quarter of the financial year 2024-25 (Q2 FY25) against a profit of INR 29.4 Cr in the year-ago quarter.

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 stock has been under pressure since reporting weak Q2 FY25 results in November when it posted a net loss of INR 18.6 Cr. The company attributed the weak performance to its transition from a super-stockist model to a direct distributor model.

Founded in 2016 by Varun and Ghazal Alagh, Honasa recently expanded its ESOP pool by adding 45,663 stock options worth approximately INR 1.12 Cr under its ESOP 2018 plan.