Block deal impact: Mamaearth shares fall 4% as 66 lakh shares change hands
Shares of Honasa Consumer, owner of Mamaearth, dropped 4% post a block deal where 66.20 lakh shares exchanged at Rs 439 each, totaling Rs 291 crore. The deal, equivalent to a 2% stake, likely saw Fireside Ventures and Sofina Ventures as sellers, both holding significant stakes in Honasa Consumer.
Shares of , which runs Mamaearth, on Tuesday, fell around 4% after a block deal in which 66.20 lakh shares changed hands. This deal was executed at an average price of Rs 439 per share, leading to a total transaction value of Rs 291 crore. It is equivalent to a 2% stake in Mamaearth's parent company, Honasa Consumer.Media reports indicated that and were probably the sellers in this transaction. Fireside Ventures Investment Fund held a 5.28% stake in Honasa Consumer, while Sofina Ventures owned a 6.16% equity stake in the company, as indicated by the latest shareholding data.
In the March quarter, the company reported a net profit of Rs 30.4 crore for the quarter vs a loss of Rs 161.7 crore in last year's quarter.
Revenue from operations in the fourth quarter increased 21% year-on-year (YoY) to Rs 471 crore against Rs 388 crore in the corresponding quarter of the previous fiscal. Honasa clocked its highest-ever profit during the March quarter, which led to a 780-bps improvement in EBITDA margins YoY.
Domestic broking firm Emkay Global has raised its target price to Rs 525 saying Honasa’s ability to devise new consumption trends and address nascent consumer needs has helped it sustain a fast scale-up, not only in the core but also in other brands.
"We continue to see sustained execution to drive growth and profitability across brands. With Q4 results, Honasa has set revenue targets across brands and has aligned execution. Indian BPC segment is quite dynamic, where social awareness continues to drive/influence trends. Honasa’s recent acquisition of Cosmogenesis Labs is further positioned to enhance fundamentals, where the founder will be instrumental in efficacious launches having a timeline of >12 months," Emkay said.
Source: Stocks-Markets-Economic Times
