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Honasa Consumer Share Price Hits Upper Circuit; Founder Raises Stake in the Firm

Updated on: Dec 4, 2024, 9:04 PM IST
Honasa Consumer's (Mamaearth parent company) share price hit the upper circuit limit of 10%, while the company's founder increased his stake in the firm
Honasa Consumer Share Price Hits Upper Circuit; Founder Raises Stake in the Firm
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On December 4, 2024, Honasa Consumer’s share price hit the upper circuit limit of 10%, reaching ₹287.85 in early trade. By noon, the share had risen 9.3%, trading at ₹286.05, up from the previous close of ₹261.70 on the NSE.

Founder Increases Stake Amid Challenges

Honasa Consumer’s co-founder and CEO, Varun Alagh, recently purchased additional shares in the company worth ₹4.5 crore, as per stock exchange filings.

This increase raises his ownership in the beauty and personal care company to 31.93%, up from 31.88%.

Alagh, who co-founded Honasa with Ghazal Alagh, now holds a combined 35% stake in the company.

Alagh’s move to increase his stake comes during a period of significant changes within the company and after a sharp drop in its stock price. Honasa’s shares have fallen by more than 38% year-to-date.

Honasa Consumer Q2 FY25 Financial Highlights

Honasa Consumer reported a consolidated net loss of ₹19 crore for the quarter ending September 30, 2024, compared to a profit of ₹29 crore in the same period last year.

The loss was attributed to a one-time inventory correction linked to changes in its distribution model. Revenue from operations for the quarter stood at ₹462 crore, reflecting a 7% decline from ₹496 crore in Q2 FY24.

The company’s EBITDA margin for Q2 FY25 was recorded at 6.6%, with an adjusted margin of 4.1% after factoring in the inventory correction.

About Honasa Consumer 

Honasa Consumer is an Indian consumer goods company, primarily focused on beauty, personal care, and wellness products. Founded by Varun Alagh and Ghazal Alagh, the company is best known for its flagship brand, Mamaearth. The company operates in the direct-to-consumer (D2C) space and has expanded its product offerings to include health supplements, baby care products, and wellness items.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 4, 2024, 12:00 PM IST

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