India's Honasa Consumer tumbles 20% after posting loss in Q2

Honasa Consumer

18/11/2024 07:07

(Adds analyst's comments in bullet 4)
    ** Shares of Honasa Consumer  HONA.NS  fall an
exchange-allowed maximum of 20% to a record low of 297.3 rupees 
  
    ** The  beauty products retailer posted a consolidated net
loss of 185.8 mln rupees ($2.20 mln) vs a profit of 294.4 mln
rupees a year ago; rev from ops down ~7% Y/Y
    ** Co hurt by inventory correction and bleak demand during
the quarter
    ** Limited offline presence, slower growth in core brands
may pave way for the competition, where recouping in the long
term would be daunting, said analyst at Emkay Research, who
downgraded the stock to "sell" from "buy"
    ** Five analysts covering the stock cut stock's PT after
results, while avg rating of 12 analysts still at "buy"; median
PT is 540 rupees - LSEG data
    ** Stock down 25% so far this month, on track for its
biggest monthly fall since listing a year ago

    ($1 = 84.3850 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com ; ( +91 8078332441))