Shares of Mamaearth s parent Honasa Consumer continued their downward trend, falling almost 5 percent on Thursday, after a flat listing on Nov 9. The stock has shed as much as 4.7 percent in intra-day to its record low of ₹307. The stock is now 5.2 percent down from its IPO price of ₹324.
“We see drivers out there and the Mamaearth brand which has grown in five years to be one of the largest brands. It definitely makes sense to buy the Honasa stock and their offline portfolio, which is around 35% of the top three brands, which are over Rs 100 crore.”
Mamaearth’s IPO had sailed through, led by qualified institutional bidders (QIB) who bought 11.5 times while retail investors remained cautious, subscribing 1.4 times the allotted quota
“From a gross margin perspective, this is the level at which we have operated in the past and our attempt would be to continue to operate at that level. Growth at these margins is possible. We have demonstrated that in the past and we will continue to demonstrate that in the future.”