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Honasa share price: This rally follows a period of significant pressure on the stock, which had previously fallen nearly 40 percent in the past month.
Honasa Consumer Share Price (Photo Credit: X)
Shares of Honasa Consumer (Mamma Earth) rose 10% to Rs 251.5 on Thursday, November 28, 2024, hitting the upper circuit limit on heavy trading volume on the NSE. A total of 17.6 lakh shares worth Rs 43.94 crore exchanged hands during the session.
The rally follows a period of significant pressure on the stock, which had previously fallen nearly 40% in the past month and more than 50% in the past three months. Earlier this month, the stock also fell below its IPO price of Rs 324.
Honasa’s first-quarter loss following its listing in November 2023 led to a sharp sell-off. same period last year. Revenue also fell 7% year-on-year to Rs 462 crore due to sluggish demand, a one-time inventory correction of Rs 630 crore, and challenges with its direct-to-consumer (D2C) model.
On a quarter-on-quarter basis, revenue and profit also saw a decline. In Q1 FY25, Honasa posted a net profit of Rs 40.25 crore, on revenue of Rs 554 crore, a decline of 17% compared to the previous quarter.
For Q2FY25, the company reported EBITDA margin of 6.6%, margin adjusted for inventory optimization stood at 4.1%.
From a technical perspective, the stock’s Relative Strength Index (RSI) is currently at 14.9, indicating that it is in oversold territory. Additionally, the MACD stands below both its signal and center line at -38.7, indicating a strong bearish trend.
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