Last Updated:
Honasa Share Price: This rally follows a period of significant pressure on the stock, which had previously fallen nearly 40% in the past month
Honasa Consumer Share Price (Photo Credit: X)
Shares of Honasa Consumer (Mamaearth) surged by 10% to reach Rs 251.5 on Thursday, November 28, 2024, hitting the upper circuit limit on heavy trading volume on the NSE. A total of 17.6 lakh shares worth Rs 43.94 crore changed hands during the session.
This rally follows a period of significant pressure on the stock, which had previously fallen nearly 40% in the past month and more than 50% in the last three months. Earlier this month, the stock also dropped below its IPO price of Rs 324.
The sharp sell-off had been triggered by Honasa’s first quarterly loss since its listing in November 2023. For the September quarter of FY25, the company reported a net loss of Rs 19 crore, a stark contrast to a profit of Rs 29 crore in the same period last year. Revenues also declined by 7% year-on-year to Rs 462 crore, due to sluggish demand, a one-time inventory correction of Rs 630 crore, and challenges with its direct-to-consumer (D2C) model.
On a quarter-on-quarter basis, revenues and profits also showed a decline. In Q1 FY25, Honasa had posted a net profit of Rs 40.25 crore, with revenues at Rs 554 crore, marking a 17% drop compared to the prior quarter.
For Q2FY25, the company reported an EBITDA margin of 6.6%, with the margin adjusted for inventory correction standing at 4.1%.
From a technical perspective, the stock’s relative strength index (RSI) is currently at 14.9, signaling that it is in oversold territory. Additionally, the MACD stands at -38.7, below both its Signal and Center Line, which indicates a strong bearish trend.
