Honasa Shares Extend Gains For Third Day, Hit 10% Upper Circuit Honasa Shares Extend Gains For Third Day, Hit 10% Upper Circuit

Honasa Shares Extend Gains For Third Day, Hit 10% Upper Circuit Honasa Shares Extend Gains For Third Day, Hit 10% Upper Circuit


SUMMARY

The stock pared some of the gains later and was trading 4.89% higher at INR 263.85 at 1:59 PM

The market capitalisation of the Mamaearth parent stood at INR 8,570.48 Cr (around $1.01 Bn), implying it has reattained the unicorn valuation

The company slipped into the red in Q2 FY25, posting a consolidated net loss of INR 18.6 Cr

Shares of Honasa Consumer, the parent company of D2C brands like Mamaearth and BBlunt, continued their winning streak for the third consecutive day, with the stock rallying 10% in early trading hours to INR 276.70 apiece on the BSE today (November 29). 

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However, the stock pared some of the gains later and was trading 4.89% higher at INR 263.85 at 1:59 PM.

At the time of writing this article, the market capitalisation of the Mamaearth parent stood at INR 8,570.48 Cr (around $1.01 Bn), implying it has reattained the unicorn valuation.

Shares of Honasa have been under huge selling pressure since the company disclosed its earnings for the September quarter of the financial year 2024-25 (Q2 FY25). The company slipped into the red in Q2 FY25, posting a consolidated net loss of INR 18.6 Cr. 

Operating revenue also fell 7% year-on-year to INR 461.8 Cr during the quarter under review.

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The company attributed the loss and the decline in its top line to its transition from super-stockist-led model to direct distributor model.

Further, the company is also facing accusations that it dumped its inventory with distributors and retailers, causing a financial burden of INR 300 Cr. However, Honasa has denied these allegations.

(The story will be updated soon)





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