Honasa Consumer's stock has fallen sharply. The stock has fallen 20 percent to a lower circuit of Rs 297. Actually the company released quarterly results. In the July-September period, Honasa Consumer suffered a loss of Rs 19 crore, while in the year-ago period the company had a profit of Rs 29 crore.

Honasa Consumer's poor results -  The parent company of D2C (direct to customer) brand Mamaearth has announced its quarterly results.

After releasing a weak earnings report for the quarter ended in September, Honasa Consumer shares hit a lower circuit of 20 per cent in the morning session on November 18. The stock price is below the IPO - which reported its first quarterly loss in 5 quarters. At 9.20 am, Honasa Consumer shares fell 20 per cent to a lower circuit of Rs 297.25 on the NSE. Following the decline, Honasa Consumer shares fell below its IPO price of Rs 324 per share. In the July-September period, Honasa Consumer incurred a loss of Rs 19 crore, while a profit after tax of Rs 29 crore in the year-ago period. Also, its revenue also declined 7 per cent to Rs 462 crore from Rs 496 crore year-on-year. Total revenue grew 9 per cent year-on-year. What now?  Emkay Global said it has downgraded shares of Honasa Consumer from 'buy' to 'sell'. The target for the stock was Rs 600 earlier. At the same time, now it has been reduced to Rs 300 per share. Mamaearth is likely to see a decline in FY25E and aims to recover the base in FY26E. On the other hand, Jefferies maintained its 'buy' call on Mamaearth parent, while reducing its target price to Rs 425 per share. Jefferies said that the huge decline in inventory and loss in the second quarter were disappointing. He said, "Looking at investor sentiment here, naysayers saw it coming while supporters are disappointed. The stock is likely to be under pressure and holders looking to exit due to low liquidity may feel trapped. Jefferies further said, "We are also disappointed, but have faith in the founders to get it back on track. Honasa Consumer is not the only start-up going through pain.