Shares of Honasa Consumer, parent of Mamaearth, fell 20% after reporting a significant quarterly loss.

Honasa Consumer, the parent company of Mamaearth, saw its shares drop by 20% after reporting a net loss of Rs 19 crore for the quarter ending September 2024, compared to a profit of Rs 29 crore the year before. The loss is attributed to a one-time inventory correction due to a shift in distribution models, impacting revenue by 7%. Despite this, the company showed a 12.3% adjusted revenue growth in the first half of the fiscal year. Emkay Global downgraded the stock to 'Sell' and cut its target price by 50%, citing growth concerns and execution lapses.

November 18, 2024
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