Honasa Consumer’s share price fell by 5% on Tuesday after a major block deal worth ₹291 crore, according to media reports.
Moneycontrol reported that around 66.20 lakh shares, representing 2% of Mamaearth’s parent company, were transferred at an average price of ₹439 per share. This price is more than 4% lower than the stock’s previous close of ₹457.95 per share.
The parties involved in the sale were not immediately identified. However, CNBC-TV18, citing sources, suggested that Fireside Ventures and Sofina Ventures were likely the sellers.
According to CNBC-TV18, Fireside Ventures and Sofina Ventures aimed to sell up to 2% of Mamaearth’s parent company for ₹273.2 crore. While these investors are believed to be the sellers, the exact amount of shares each sold is unknown.
Latest shareholder data shows Fireside Ventures owned 5.28% of Honasa Consumer, while Sofina Ventures held 6.16%.
Honasa Consumer’s share price opened at ₹440.60 on the BSE, hitting an intraday high of ₹443.70 and a low of ₹435.05.
Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, noted that while there hasn’t been much activity since last week, prices are trading in a bullish breakout. A move beyond ₹450 could restart the upward trend, with a stop loss at ₹425 for current longs.
In Q4 FY24, Mamaearth’s parent company reported a consolidated net profit of ₹30.47 crore, its highest-ever quarterly profit, significantly improving from a ₹161.75 crore loss the previous year. Revenue from operations increased by 21.5% year-on-year to ₹471.09 crore.
Following these results, ICICI Securities raised its earnings estimates, predicting a 24% revenue CAGR and a 50% PAT CAGR over FY24-26E. They maintained a BUY rating with a target price of ₹550, indicating a potential 70x FY26E EPS and 5x EV/Sales FY26E. Key risks include high competition and execution challenges.
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