Mamaearth Shares Zoom 9% Post Q3 Results

Shares of Mamaearth parent Honasa Consumer surged as much as 9% to INR 223.30 during the early trading hours today (February 13) after reporting a flat profit in the third quarter of fiscal year 2024-25 (Q3 FY25).

At 11:15 AM, the stock’s market capitalisation stood at INR 7,240.33 Cr with as many as 46 Lakh shares trading hands by then. 

The company reported a consolidated net profit of INR 26.02 Cr in Q3 FY25, a marginal 0.4% increase from INR 25.90 Cr in the year-ago quarter. However, sequentially it recovered from an INR 18.58 Cr loss.

On similar lines, its topline grew 6% YoY and 12% QoQ to INR 517.51 Cr during the year under review. 

The D2C major has witnessed a 7% upsurge in its stock value in the last 5 days at the current market price, even after reporting its fresh all-time low figure Yesterday. Notably, today’s stock rally comes against the last six trading sessions ending in the red.

Amidst all this, the brokerage firms have given mixed responses to the stock. ICICI Securities has upgraded the stock from ‘Add’ to ‘Buy’ with a target price of INR 400 per share. Jefferies has kept its ‘Buy’ rating but lowered the target price to INR 320 from INR 360.

Emkay Financial has maintained its ‘Sell’ rating and reduced the target price to INR 200 from INR 250. Kotak Institutional Securities has upgraded the stock from ‘Reduce’ to ‘Add’ while cutting the target price to INR 250 from INR 340.

Citi has reaffirmed its ‘Sell’ rating on Honasa and sharply reduced the target price to INR 180 from INR 300. Similarly, JP Morgan has maintained its ‘Underperform’ rating and lowered the target to INR 197 from INR 300.

The stock has performed badly in the short and long-term periods. While Honasa’s shares have delivered a negative return of 8% over the last month at the current market price, it has lost 47% over the last year.

Looking at Honasa’s broader trajectory, the company has faced challenges over the past year, struggling with offline distribution and losing its unicorn status. Of the 12 analysts covering the stock, 4 had a ‘sell’ rating, while 6 recommended a ‘buy’ as of December 2024.

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.

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.