Introduction:
Shares of a D2C brand hit a 20% lower circuit after reporting a ₹19 crore loss for Q2 FY25. Revenue dropped by 7%, and expenses surged by 9%, as the company navigated a shift in its distribution model.
Share price movement of Honasa Consumer Ltd:
On 18 November 2024, Honasa Consumer Ltd stock opened at ₹319.95, marking a 13.44% decrease from the previous close of ₹369.75. It reached an intraday high of ₹319.95, before dropping to ₹295.80, a 20% decrease.
By 11:41 AM, the stock was trading at ₹297.64, showing a 6.99% decline. The company’s market capitalization stands at ₹9,608.29 crore.
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Honasa Consumer Ltd Q2 FY25 results:
Honasa Consumer shares hit a 20% lower circuit on November 18, 2024, following a weak earnings report for Q2 FY25. At 9:20 am, the stock dropped to ₹297.25, below its IPO price of ₹324, reflecting investor concerns.
The company reported a ₹19 crore loss for the July-September quarter, compared to a ₹29 crore profit in the same period last year. Revenue also declined by 7%, falling to ₹462 crore, while expenses surged by 9% year-on-year, totaling ₹506 crore.
This financial setback is attributed to Honasa’s transition to a direct-to-consumer (D2C) model under Project ‘Neev’, which required inventory adjustments. The shift impacted the company’s profitability during the quarter.
Recent news on Honasa Consumer Ltd:
Honasa Consumer Ltd, the parent company of Mamaearth, clarified that it holds no assets in the UAE, responding to recent reports of asset attachment. The company stressed its commitment to transparency amid financial challenges.
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Stock performance of Honasa Consumer Ltd:
Honasa Consumer Ltd’s stock has shown mixed returns recently. Over the past week, it recorded a 2.31% decline. However, it saw a steeper drop of 12.9% over the past six months. On a more positive note, the stock posted an 11.8% return over the last year, indicating long-term growth potential.
Shareholding pattern of Honasa Consumer Ltd:
| All values in % | Sep 2024 | Jun 2024 | Mar 2024 |
| Promoter | 35.00% | 35.10% | 35.10% |
| FII | 19.30% | 14.00% | 12.20% |
| DII | 17.50% | 17.40% | 15.90% |
| Public | 28.20% | 33.60% | 36.80% |
About the company Honasa Consumer Ltd:
Honasa Consumer Ltd (HONASA) is a consumer goods company known for its direct-to-consumer (D2C) brands like Mamaearth, focusing on personal care, wellness, and home care products. It operates through online platforms and emphasizes sustainability, offering natural and toxin-free solutions. The company has grown rapidly since its inception.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
