Mamaearth parent Honasa Consumer share price hits 10% upper circuit; here's why

The stock rose 10% to 287.85 apiece, its upper circuit limit, on the NSE, taking the market capitalisation to ₹9,350.06 crore.

Honasa Consumer promoter Varun Alagh increases stake to 31.93%

Varun Alagh, co-founder and chief executive officer (CEO) of Honasa Consumer, has brought additional equity shares worth ₹4.5 crore in the company, taking his stake to 31.93% from 31.88% earlier.

With this, Varun and his wife, Ghazal Alagh, together hold a 35% stake in the company.

In the past one month-period, the stock has declined 27% following poor Q2 results.

Revenue from operations fell 6.9% to ₹461.82 crore in the three-month period ended September 2024 against ₹496.1 crore in the same period last fiscal.

EBITDA (Earnings before interest, taxes, depreciation, and amortisation) descended 6.6% year-on-year (YoY) to 6.6% in Q2 FY25 "with EBITDA Margin adjusted for inventory correction at 4.1%".

"In this quarter, we have taken strategic steps towards transitioning from super-stockists to direct distributors in the top 50 cities. This transition has impacted our revenue and profits, leading to a slowdown for Mamaearth," Varun Alagh said.

He said that the realignment will strengthen offline go-to-market strategy in the coming quarters.

The company posted total expenses of ₹506.21 crore, up 9.1% YoY. The total income declined 4.24% to ₹481.84 crore.

Honasa Consumer is a personal care and beauty firm that operates digital-first brands like Mamaearth, Bblunt, The Derma Co, Dr Sheth’s, Staze, and Aqualogica. With more than one lakh FMCG retail locations and a vast omnichannel distribution network, the company's products are available to customers in over 700 districts across India.