Shares of Honasa Consumer Ltd., the parent company of brands including Mamaearth, came under pressure on Tuesday, September 29, after a sizeable block transaction was executed shortly after the market opened. The deal involved around 1.4 crore shares, equivalent to 4.4% of the company’s outstanding equity, putting the stock firmly in focus during the trading session.
The shares were exchanged at an average price of ₹450 apiece, taking the aggregate transaction value to around ₹643.4 crore. The deal price represented a discount of approximately 3.4% to Honasa Consumer’s previous closing price.
Following the transaction, the Honasa stock declined as much as 4.8% to touch an intraday low of ₹443.70 per share on the BSE. Honasa Consumer was also among the most actively traded counters across the BSE and NSE during the session.
The identities of the official buyers and sellers involved in Tuesday’s transaction were not immediately available.
The block deal was significantly larger than the transaction size indicated in earlier media reports. Those reports had suggested that Peak XV Partners Investments VI, Sequoia Capital Global Growth Fund III – US/India Annex Fund and Redwood Trust were looking to sell up to 2.73% of their combined existing outstanding equity in Honasa Consumer through block deals for as much as ₹400 crore.
The reported floor price for that proposed transaction was ₹450 per share, which would have represented a discount of up to 3.4% to the prevailing market price. The sellers were also expected to be subject to a 45-day lock-in period for any further sale of shares after the transaction.
However, Tuesday’s actual block deal involved around 4.4% of Honasa Consumer’s equity, with shares worth ₹643.4 crore changing hands. Jefferies acted as the sole bookrunner for the transaction. According to Bloomberg data cited in the source, Honasa Consumer had 32.6 crore shares outstanding as of June 30.
The sellers will remain subject to a 45-day lock-in period for further share sales following the transaction.
As of the June quarter, promoter entities held a 35.47% stake in Honasa Consumer, while public shareholders accounted for the remaining 64.53%. Within the public shareholder category, Peak XV Partners Investments VI held 14.8%, while Sequoia Capital Global Growth Fund III – US/India held 3.44%. Redwood Trust was likely holding less than 1% of the company, which could explain why its precise shareholding was not reflected in stock exchange data.
Honasa Consumer Stock performance
Tuesday’s decline came despite Honasa Consumer delivering a strong performance so far in 2026. The stock has gained around 59.4% on a year-to-date basis, significantly outperforming the Nifty 50, which has declined 13.3% over the same period.
The sharp year-to-date gain had placed the stock among the notable performers in the consumer segment, making Tuesday’s large block transaction an important development for investors tracking the counter.
The latest decline followed the sizeable transfer of shares between investors, while details about the ultimate buyers and sellers were yet to be officially disclosed.
What’s next? Technical Outlook
According to Jigar S Patel, Senior Manager – Technical Research, Anand Rathi Share and Stock Brokers, “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. The RSI has also moved below the 45 zone, which has previously acted as an important momentum threshold.”
Hence, traders holding the stock may consider partial profit booking at current levels rather than chasing further upside. On the downside, ₹430–420 can act as an immediate support zone, followed by stronger support near ₹400, close to the 200-EMA at ₹395.82. A sustained move below ₹400 could weaken the structure. Fresh buying should be considered only after momentum improves, he suggested.
Meanwhile, Sachin Gupta, VP – Technical Research at Choice Equity Broking noted HONASA is trading around ₹450 after a strong rebound from its base. The weekly price action shows multiple rejections near the ₹480– ₹500 supply zone, triggering a healthy pullback toward its rising short-term moving average. A breach below immediate support at ₹440 could extend the retracement toward ₹400, where prior breakout demand and key moving averages align. Overcoming ₹500 remains vital for resuming the primary uptrend, he advised.
“The weekly RSI has cooled from overbought conditions above 70 down to 57.60, reflecting easing upside momentum without breaking into bearish territory. Weekly volume expanded aggressively during the upward rally but has contracted noticeably on the pullback, indicating limited institutional selling pressure and normal consolidation at resistance,” added the expert.
Is Honasa Consumer a buy?
Earlier this month, Equirus Securities maintained a positive view on Honasa Consumer, arguing that the company’s recent improvement reflected a repair in execution rather than merely benefiting from a weak base. The brokerage expects growth in the near term to receive support from better offline execution, a greater contribution from focus categories and the scaling up of younger brands.
Equirus also highlighted Honasa Consumer’s brand-building strategy as a key long-term growth driver. “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,” the brokerage said.
According to Equirus, Mamaearth is expected to remain an important growth driver, with the brokerage forecasting a 10% compound annual growth rate (CAGR) for the brand after its reset. The Derma Co is expected to expand at a 20% CAGR, supported by new product extensions and increasing offline presence.
The brokerage also expects Honasa’s younger brands to collectively grow at a 27% CAGR, although this growth would come from a smaller base.
On profitability, Equirus expects Honasa Consumer’s EBITDA margin to expand by 314 basis points to 13% by FY29E, supported by optimisation of operating expenses. This is expected to translate into an improvement in return on equity (ROE) to 22% by FY29E.
Equirus initiated coverage on the stock with a LONG rating and a December 2027 target price of ₹595, valuing the company at 48 times its December 2028 estimated earnings per share (EPS) of ₹12.4.
Honasa Consumer Q1 results
Honasa Consumer had reported a strong set of first-quarter results last month, with both its profitability and revenue showing substantial year-on-year improvement.
The company’s net profit more than doubled to ₹90.2 crore in the June quarter, compared with ₹41.3 crore in the corresponding period of the previous year. Revenue during the quarter rose 27% to ₹756 crore from ₹595.2 crore a year earlier.
Profitability also improved sharply. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to ₹110.1 crore from ₹45.7 crore in the year-ago quarter. As a result, the company’s EBITDA margin expanded to 14.57% from 7.68%.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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