The stock had declined 40% over four trading sessions after reporting its September quarter results, where it reported a net loss, while it had reported a net profit during the same quarter last year. It also reported a drop in its topline, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) also was a loss, compared to a profit in the base quarter.
That four-day drop also took the stock below its IPO price of ₹324 and the stock also halved from its post-listing peak of ₹547.
Post its results, Emkay downgraded the stock to “sell” and also downgraded the stock by 50% to ₹300 from ₹600. It now awaits proof of execution as the management is aiming for a turnaround in business.
12 analysts cover Honasa Consumer currently, where six of them have a “buy” rating, two say “hold”, while four of them have a “sell” recommendation on the stock.
On the charts, Honasa Consumer had slipped into “Oversold” territory, with its Relative Strength Index (RSI) declining to levels as low as 12. Despite this rebound, the stock still is in oversold territory with the RSI now at 27. An RSI reading below 30 means that the stock is “oversold.”
Shares of Honasa Consumer are locked in a 10% upper circuit at ₹252.65. The stock is down 40% so far in 2024.
