Honasa Consumer's Shares Plunge Amid Revenue Drop

Honasa Consumer Ltd experienced a significant stock decline, falling 12% as it reported a weak performance for Q2 2024, with an Rs 18.57 crore loss. This downturn, primarily caused by an inventory correction and a strategic shift in distribution, follows a previous Rs 29.43 crore profit in the same quarter last year.

Shares of Honasa Consumer Ltd, known for brands like Mamaearth and The Derma Co, plummeted nearly 12% on Tuesday. This slump continued from a sharp decline on Monday after the company reported disappointing second-quarter figures, showcasing the challenges the FMCG giant faces.

The stock closed at Rs 263.75 on the BSE after dropping 10.84%. It hit an intraday low of Rs 242.60, marking a substantial fall. Similarly, on the NSE, shares fell 11.60% to close at Rs 262.75, underscoring a tough trading session for investors.

Two days of steep declines have seen the company's market valuation shrink by Rs 3,443.13 crore to Rs 8,567.23 crore. This comes after Honasa Consumer posted a consolidated loss of Rs 18.57 crore for Q2 2024, moving from a profit of Rs 29.43 crore in the previous year, largely due to inventory adjustments and a strategic shift in their distribution model, as stated by CEO Varun Alagh.

(With inputs from agencies.)