Shares of Honasa Consumer, the parent company of Mamaearth, experienced a significant drop of 30% in just two days, triggered by disappointing Q2 financial results and a reported loss of ₹19 crore.
Mumbai: Honasa Consumer Limited, the parent company of popular brands like Mamaearth, The Derma Co., and BBLUNT, has seen its stock price plummet by 30% over the course of two trading days. On Tuesday, November 19th, the company's shares closed at ₹262.75, marking an 11.61% decline for the day. This follows a 20% drop on the previous day, November 18th, when the stock closed at ₹297.25. The consecutive declines are attributed to the company's underwhelming financial performance in the second quarter of fiscal year 2024-25.
Over the past month, Honasa's shares have fallen by 37.22%. The stock has also declined by 38.10% in the last six months and 24.86% over the past year. Since the beginning of 2024, Honasa's shares have decreased by 38.44%. The company's current market capitalization stands at ₹8.61 thousand crore.
The financial results reveal a loss of ₹19 crore for the second quarter of FY25, a stark contrast to the ₹29 crore profit reported during the same period last year (Q2FY24). Consolidated revenue from operations for the July-September quarter stood at ₹462 crore, a 7.05% year-over-year decline from the ₹496 crore reported in the corresponding quarter of the previous year.
Honasa Consumer Limited focuses on personal care and beauty products, marketing its offerings through brands such as Mamaearth, The Derma Co., Aqualogica, and Ayuga. The company has also strategically acquired businesses like BBLUNT and Dr. Sheth's to strengthen its portfolio. Founded in 2016 by Ghazal and Varun Alagh, Honasa Consumer gained prominence for its toxin-free baby products under the Mamaearth brand. The company's website claims that Mamaearth is the first brand in Asia to have products with Made Safe certification.
Following the release of the disappointing quarterly results, online searches for "Honasa Consumer" have surged, indicating increased investor and public interest in the company's situation, according to Google Trends data.
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