Honasa Consumer shares rally 7% on block deal; Fireside Ventures likely seller in Mamaearth parent

Shares of Honasa Consumer Ltd climbed 6 per cent in Tuesday's trade amid high turnover on the counter. A shareholder Fireside Ventures was reportedly looking to sell 1.9 per cent stake or 61 lakh shares worth Rs 234 crore today. The Honasa Consumer stock, which fell 4.04 per cent in the previous session, surged 5.7 per cent to hit a high of Rs 406 on NSE. The counter saw a turnover of Rs 283.81 crore within the first few minutes.   

As per CNBC-TV18, Honasa saw 63 lakh shares, accounting for 1.96 per cent equity, change hands. The shares were worth Rs 238 crore, largely in line with the block deal reports.   

Data compiled from BSE suggests Fireside Ventures had 7.57 per cent stake or 2,43,54,922 shares in Honasa Consumer at the end of September quarter. The stake was worth Rs 934 crore as on Monday's closing price. At the prevailing price, Mamaearth shares are up 25.30 per cent over the issue price of Rs 324. The stock made its market debut on November 7.

Jefferies in a November note said Honasa Consumer has been a notable outlier among digital-first BPC brands in India, from the standpoint of scale, profitability, and capital efficiency. It expects the Mamaearth parent to deliver a sector-leading revenue growth over the coming years, coupled with improving profitability.  In its base case, it has assumed a 28 epr cent revenue CAGR over FY23-26E, with Ebitda margins improving to 11 per cent in FY26E. It valued Honasa Consumer at 6 times September 2025 price-to-sales to arrive at a price target of Rs 530.

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