Honasa Shares Tank 18% To Hit An All-Time Low Of INR 242.60

Shares of Honasa Consumer, the company which owns D2C brands Mamaearth and BBlunt, nosedived almost 18% to hit an all-time low of INR 242.60 apiece on the BSE during the intraday trading session today (November 19).

As of 02:29 PM, the company’s stock was down more than 10% at INR 265.70, compared to its previous day’s close of INR 295.80.

Amid a decline in its share prices, the market capitalisation of the Mamaearth parent slipped to INR 8,615.96 Cr ($1.02 Bn).

With this, Honasa extended losses for the second consecutive day after touching its 52-week low at INR 295.80 on the BSE yesterday (November 18). The stock is down almost 34% from its Thursday’s close of INR 369.75.

Shares of Honasa have been on a downward trend after the company 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 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.

The listed D2C major attributed the loss and fall in sales to its ongoing transition from super-stockist-led model to direct distributor model.

In FY24, Honasa began a transition journey to direct distributors, to minimise its expenses and strengthen its bottomline. The direct distributor model is active in Honasa’s top 10 cities by sales and is expected to be adopted across its key markets.

Additionally, it is to note that in FY24, the company made nearly 35% of its revenue from offline sales, and a bulk of this has come from general trade retail outlets, displaying how Mamaearth positioned itself not as a premium product but targetted mass availability.

It is pertinent to note that Q2 FY25 saw relatively weaker financial performance by new-age tech companies, with stocks under Inc42’s coverage falling drastically in the past week, due to continuing FII outflow resulting in the Indian equities market ending in the red this week as well.