Categories: Business

Mamaearth shares drop 4% on block deal impact as 66 lakh shares change hands

Mamaearth Honasa Consumer share price today: Shares of Honasa Consumer, the parent company of Mamaearth, saw a nearly 4% decline on Tuesday following a block deal involving 66.20 lakh shares.
The transaction, which took place at an average price of Rs 439 per share, amounted to a total value of Rs 291 crore, representing a 2% stake in Honasa Consumer, an ET report said.
According to media reports, Fireside Ventures and Sofina Ventures were likely the sellers in this transaction. The latest shareholding data revealed that Fireside Ventures Investment Fund held a 5.28% stake in Honasa Consumer, while Sofina Ventures owned a 6.16% equity stake in the company.
Honasa Consumer reported a net profit of Rs 30.4 crore for the March quarter, a significant improvement compared to the loss of Rs 161.7 crore in the corresponding quarter of the previous year.
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The company’s revenue from operations grew by 21% year-on-year (YoY) to Rs 471 crore, up from Rs 388 crore in the same quarter of the previous fiscal. Honasa achieved its highest-ever profit during the March quarter, resulting in a 780-basis point improvement in EBITDA margins YoY.
Emkay Global, a domestic broking firm, has increased its target price for Honasa Consumer to Rs 525, acknowledging the company’s ability to identify and address emerging consumer needs, which has enabled it to maintain rapid growth not only in its core business but also in other brands.
The firm expects Honasa to continue executing its strategies effectively, driving growth and profitability across its brands.
Emkay Global also highlights the dynamic nature of the Indian BPC segment, where social awareness plays a significant role in shaping trends. The firm believes that Honasa’s recent acquisition of Cosmogenesis Labs will further enhance its fundamentals, with the founder playing a crucial role in launching efficacious products with a timeline exceeding 12 months.
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