Honasa's share price fell further on Tuesday, reaching a new 52-week low following the company's Q2 earnings. Honasa shares fell 18% Thursday, reaching an intraday low of ₹242.60 on BSE. The firm that owns FMCG brands including Mamaearth and The Derma Co saw its shares plunge by 20% on Monday after declaring a consolidated loss of ₹18.57 crore for the second quarter ending September 30, 2024, attributed to inventory changes.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the Honasa share price has responded negatively in the last two sessions following poor earnings, dropping over 30% and reaching new lows.

However, given the bearish momentum, avoid catching the falling knife and exploit any bounce to liquidate long positions, as it will continue to underperform in the short run.

Honasa's share price has fallen more than 30% in the last week and is down 53% from its 52-week high. 

According to Honasa Consumer's results release, sales for Q2 was ₹462 crore, representing a 6.9% growth rate. Adjusting for inventory correction, revenue increased by 5.7% to ₹525 crore. Varun Alagh, Chairman and CEO, stated that Honasa Consumer has been concentrating on optimizing its distribution model over the previous six months.