Shares of Honasa Consumer, the parent company of Mamaearth, extended their losing streak, plunging over 18 percent on November 19 as weak Q2FY25 results continued to weigh on investor sentiment. The stock hit a 52-week low of Rs 242.4 today.  

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At 10.45 AM, Honasa Consumer shares were trading 11 percent lower at Rs 263, well below their IPO price of Rs 324 per share. On a year-to-date basis, the stock has shed nearly 40 percent, significantly underperforming the Nifty 50 which posted a 9 percent gain during the same period. 

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During the September quarter, Honasa Consumer posted a net loss of Rs 19 crore, a stark contrast to the Rs 29 crore profit recorded in the same period last year. Revenue dipped 7 percent year-on-year to Rs 462 crore from Rs 496 crore.  

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The downturn has been attributed to the company's shift toward a direct-to-consumer (D2C) distribution model under its Project 'Neev,' which has led to inventory adjustments. 

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Honasa Consumer faced multiple downgrades from brokerage firms following its Q2 FY25 results. Goldman Sachs downgraded the stock to 'Neutral' and slashed the target price to Rs 375 from Rs 570, while JP Morgan downgraded it to 'Underweight' and reduced the target price to Rs 330. 

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Emkay Global downgraded Honasa Consumer shares to 'Sell', from 'Buy', cutting the target price to Rs 300 apiece, from Rs 600. "Our thesis of accelerated growth with steady share gains in personal care got a beating from weak business commentary in Q2FY25.  

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Kotak Institutional Equities downgraded the stock to 'Reduce' from 'Add' while also slashing the target price to Rs 340 from Rs 475. "Honasa's transition into a formidable BPC player from a challenger has met with a hurdle, with the flagship brand Mamaearth (60% of sales) declining 

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