Shares of Honasa Consumer tumbled 20 per cent to hit the lower circuit limit on Monday.
Shares of Honasa Consumer Ltd, which owns FMCG brands such as Mamaearth and The Derma Co, fell nearly 12 per cent on Tuesday, extending its previous day's sharp decline, after the firm reported a weak set of numbers for the second quarter of this financial year.
The stock tanked 10.84 per cent to settle at Rs 263.75 on the BSE. During the day, it slumped 17.98 per cent to Rs 242.60.
At the NSE, it tumbled 11.60 per cent to Rs 262.75.
Shares of Honasa Consumer tumbled 20 per cent to hit the lower circuit limit on Monday.
The company's market valuation eroded by Rs 3,443.13 crore to Rs 8,567.23 crore in two days.
On November 14, Honasa Consumer Ltd reported a consolidated loss of Rs 18.57 crore for the second quarter ended September 30, 2024 on account of inventory correction.
The company had reported a profit after tax of Rs 29.43 crore in the year-ago period, it said in a regulatory filing on Thursday.
Honasa Consumer's revenue from operations was down 6.9 per cent to Rs 461.82 crore in the second quarter of this fiscal.
Chairman and CEO Varun Alagh said over the past few months, Honasa Consumer has been working to optimise its distribution model.
"In this quarter, we have taken strategic steps towards transitioning from super-stockists to direct distributors in the top 50 cities. This transition has impacted our revenue and profits, leading to a slowdown for Mamaearth," he said.