Honasa Consumer Stock

Varun Alagh Increases Stake to 31.93%, Honasa Consumer Stock Gains 9% After Q2 Loss

Honasa Consumer stock jumped 9% on December 4 after co-founder and CEO Varun Alagh increased his stake in the company by buying additional shares worth ₹4.5 crore. His individual holdings have now jumped 31.93% from 31.88%. Along with his wife, Ghazal Alagh, the couple now owns a huge 35% of the company, which is the parent firm of beauty brand Mamaearth.

This spurt in the stake has brought Honasa Consumer into the limelight despite the challenges the company faces. The company reported a loss for the first time in more than a year. Honasa reported a loss of  ₹19 crores for Q2 FY25 as against the ₹29 crore profit during the same quarter last year. Revenues also declined by 7% year-on-year, from ₹496 crore to ₹462 crore.

Honasa Stock Moves Higher Despite Setback

After this setback, the market rebounded in response to the confidence Alagh has displayed in his business. Honasa Consumer traded at ₹281.85 at 9:52 AM on December 4, NSE. The rise is a significant 25 percent over the last week, with Honasa Consumer Stock still taking major beats, having declined more than 38 percent so far in the year.

Market analysts have been cautious. Emkay Institutional Equities recently downgraded the stock to "sell" after lowering earnings and revenue forecasts. The firm cited slow growth and reduced operating leverage as major concerns.

Alagh Increases Stake in Honasa Amid Volatile Times

This is a rarity in the ecosystem of Indian startups, where promoters dilute larger stakes to attract more funding. Alagh, according to this, has indicated higher faith in the potential, even at a time when Honasa is volatile.

Investor sentiments across Honasa Consumer are still somewhat divided. The strategic initiatives the company is examining, combined with the market recovery in a few months, will determine investor sentiments.