Honasa Shares Tank 20% To Hit 52-Week Low After Weak Q2 Results

SUMMARY

Shares of Mamaearth parent Honasa Consumer plunged 20% to hit a 52-week low at INR 295.80 apiece on the BSE during the intraday trading session today (November 18)

Honasa posted a consolidated net loss of INR 18.6 Cr in the quarter ended September 2024 (Q2 FY25), while the company reported a net profit of INR 29.4 Cr, a year ago

Weak results of companies in the second quarter and continuing FII outflow, shares of new-age tech stocks under Inc42’s coverage also declined

Shares of Mamaearth parent Honasa Consumer plunged 20% to hit a 52-week low at INR 295.80 apiece on the BSE during the intraday trading session today (November 18) after the company’s weak Q2 results.

Weeks ahead of the BBLUNT’s parent quarterly results, shares of the company fell over 6% to a low of INR 490 apiece on the NSE during early trading on September 12, after a 10.9% stake in the company changed hands via a block deal estimated at INR 1,763.3 Cr.

In the same light, Honasa’s investors Peak XV Partners, Fireside Ventures, Stellaris Venture Partners, among others, sold its shares worth INR 1,601.68 Cr via bulk deals.

Honasa posted a consolidated net loss of INR 18.6 Cr in the quarter ended September 2024 (Q2 FY25), while the company reported a net profit of INR 29.4 Cr, a year ago, and INR 40.3 Cr in the preceding June quarter.

Additionally, the D2C brands’ top line also took a hit as revenue from operations fell nearly 7% to INR 461.8 Cr during the quarter under review from INR 496.1 Cr in Q2 FY24.

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

The Q2 results came in after the market closed on Thursday (November 14), while the stock of Honasa closed 1.48% higher at INR 369.75 on the BSE in the intraday trading session.

It is to note that weak financials of companies in the second quarter of the fiscal year 2024-25 (FY25) and continuing FII outflow resulted in the Indian equities market ending in the red this week as well.

In line with this, shares of new-age tech stocks under Inc42’s coverage also declined. Twenty four new-age tech stocks fell in a range of 0.08% to about 17% in the past week.

For instance, Yudiz, which reported a 99.9% decline in its net profit to INR 5K in H1 FY25, emerged as the biggest loser the past week. The blockchain and IT development company’s shares plummeted 16.56% to end the week at INR 70.30 on NSE SME.