1 hr ago
Honasa Consumer Shares Fall After ₹643-Crore Block Deal
Honasa Consumer, which owns brands such as Mamaearth, had a large group of shares traded between investors.
The trade involved about 4.4% of the company and was worth ₹643.4 crore.
The shares were sold at ₹450 each, slightly below their previous market price.
This made the stock fall by nearly 5% during the day.
The identities of the buyers and sellers were not immediately announced.
One market expert said the stock may have risen too quickly and suggested some investors consider taking profits.
Another brokerage remained optimistic because the company recently reported stronger sales and profits.
Honasa's net profit more than doubled in the June quarter.
Investors therefore received both a short-term warning and a positive long-term outlook.
About 1.4 crore Honasa Consumer shares, or 4.4% of outstanding equity, changed hands at ₹450 apiece.
The ₹643.4-crore transaction was priced at a 3.4% discount to the previous close, sending the stock down as much as 4.8% to ₹443.70.
The buyers and sellers were not immediately disclosed, although Peak XV Partners, Sequoia Capital and Redwood Trust had reportedly planned a smaller sale.
Technical analyst Jigar S. Patel advised partial profit booking, citing weakening momentum and support levels at ₹430–420 and near ₹400.
Equirus Securities retained a positive long-term view, assigning a ₹595 December 2027 target after Honasa reported strong quarterly revenue and profit growth.
- Who
- Honasa Consumer Ltd.; the reported transaction involved existing investors, with buyers and sellers not immediately identified.
- What
- A block deal involving about 1.4 crore shares, or 4.4% of the company's outstanding equity, was executed at ₹450 per share.
- Where
- The shares traded on the Bombay Stock Exchange and National Stock Exchange of India; the stock reached an intraday low on the BSE.
- When
- Tuesday, September 29.
- Why
- The discounted block transaction triggered selling pressure; the articles do not state the sellers' reason for exiting.
Cautious technical view
Positive fundamental view
Near-term stock direction
Cautious technical view
Anand Rathi's Jigar S. Patel said momentum appeared exhausted, with the stock below its consolidation zone and its RSI weakening. He suggested partial profit booking and waiting for momentum to improve before fresh buying.
Positive fundamental view
Equirus Securities said recent improvements reflected better execution and maintained a positive view, expecting support from offline expansion, focus categories and younger brands.
Valuation and price levels
Cautious technical view
Patel identified ₹430–420 as an immediate support zone and near ₹400 as stronger support, warning that a sustained move below ₹400 could weaken the structure.
Positive fundamental view
Equirus Securities initiated coverage with a LONG rating and a December 2027 target price of ₹595.
Business outlook
Cautious technical view
The block deal, discounted pricing and weakening technical indicators were cited as reasons for caution despite the stock's strong 2026 performance.
Positive fundamental view
Equirus projected growth for Mamaearth, The Derma Co and Honasa's younger brands, alongside EBITDA-margin expansion to 13% by FY29E.
Key facts
- Transaction size
- About 1.4 crore shares, representing 4.4% of outstanding equity
- Transaction value
- Approximately ₹643.4 crore
- Block-deal price
- ₹450 per share, around 3.4% below the previous close
- Intraday low
- ₹443.70 per share, after a decline of as much as 4.8%
- Lock-in period
- The sellers face a 45-day lock-in period for further share sales
- June-quarter revenue and profit
- Revenue rose 27% to ₹756 crore, while net profit more than doubled to ₹90.2 crore
- Equirus target
- ₹595 for December 2027, alongside a LONG rating
Quotes
Equirus Securities
Brokerage that maintains a positive view and coverage of Honasa Consumer
“HONASA CONSUMER has started showing signs of momentum exhaustion after a strong upmove. The stock has slipped below the consolidation zone, while RSI has weakened to 40.65 and remains below its RSI moving average near 52, indicating a loss of momentum.”
livemint.com
“More importantly, Honasa’s repeatable brand-building model—identifying attractive categories, creating hero products and scaling them efficiently—provides a strong foundation for sustained long-term growth.”
livemint.com
Sources
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