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Honasa Share Price: This rally follows a interval of serious strain on the inventory, which had beforehand fallen practically 40% prior to now month
Honasa Consumer Share Price (Photo Credit: X)
Shares of Honasa Consumer (Mamaearth) surged by 10% to succeed in Rs 251.5 on Thursday, November 28, 2024, hitting the higher circuit restrict on heavy buying and selling quantity on the NSE. A complete of 17.6 lakh shares price Rs 43.94 crore modified arms throughout the session.
This rally follows a interval of serious strain on the inventory, which had beforehand fallen practically 40% prior to now month and greater than 50% within the final three months. Earlier this month, the inventory additionally dropped beneath its IPO value of Rs 324.
The sharp sell-off had been triggered by Honasa’s first quarterly loss since its itemizing in November 2023. For the September quarter of FY25, the corporate reported a internet lack of Rs 19 crore, a stark distinction to a revenue of Rs 29 crore in the identical interval final yr. Revenues additionally declined by 7% year-on-year to Rs 462 crore, on account of sluggish demand, a one-time stock correction of Rs 630 crore, and challenges with its direct-to-consumer (D2C) mannequin.
On a quarter-on-quarter foundation, revenues and earnings additionally confirmed a decline. In Q1 FY25, Honasa had posted a internet revenue of Rs 40.25 crore, with revenues at Rs 554 crore, marking a 17% drop in comparison with the prior quarter.
For Q2FY25, the corporate reported an EBITDA margin of 6.6%, with the margin adjusted for stock correction standing at 4.1%.
From a technical perspective, the inventory’s relative power index (RSI) is presently at 14.9, signaling that it’s in oversold territory. Additionally, the MACD stands at -38.7, beneath each its Signal and Center Line, which signifies a robust bearish development.
