MamaEarth’s Stock Rises 10% in a Day, Honasa Consumer Hits Upper Circuit on Nov 28

Honasa Consumer, Mamaearth’s parent company, saw its shares rise by up to 10% to INR 251.55 today (November 28).

This increase in the company’s shares coincided with a 0.86% or 178.31 point positive increase in the fast moving consumer goods (FMCG) section at 21,383.03 at 10:11 AM.

The stock opened the day 3.14% higher at INR 235.90, compared to the previous close of INR 228.70.

Today, a total of 17.59 lakh Honasa shares were traded. The company’s market capitalisation stood at INR 8,170.95 crore when the stock achieved its peak.

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It is worth noting that the company’s stock has generally remained on a negative trend since it fell into the red in the September quarter of the fiscal year 2024-25 (Q2 FY25), registering a consolidated net loss of INR 18.6 crore.

The shares had already hit an all-time low twice this month, on November 19 and 22. 

Brokerage company Emkay likewise mirrored its gloomy position on the stock, downgrading Honasa’s shares to “sell” from “buy” and lowering its price objective by half to INR 300 from INR 600.

Notably, seven of Honasa’s previous ten trading sessions have closed in the red. On a year-to-date basis, its stock has returned a negative 40.99% to investors.

Even after today’s upper circuit hit, their shares are 54.01% behind their 52-week high of INR 547.00.

While Mamaearth recorded a combined net loss of INR 18.6 crore, the D2C giant blamed the loss and drop in sales on its ongoing shift from a super-stockist-led to a direct distribution model.

Honasa’s top line suffered as well, with revenue from operations falling roughly 7% to INR 461.8 crore during the quarter under review, down from INR 496.1 crore in Q2 FY24.

Its total expenses increased by 9% to INR 506.2 Cr in the current quarter, up from INR 464 Cr in the previous year.