Mamaearth's parent Honasa Consumer Ltd shares tanked 4.70 per cent on Friday to hit an intraday low of Rs 425. The stock eventually settled 4.04 per cent lower at Rs 427.95. Today's fall in the share price came after Honasa informed exchanges that a Dubai court upheld its previous order to attach the company's UAE assets.
"This is to inform that in the ongoing litigation between Honasa Consumer (Company/Petitioner in this case) and RSM General Trading LLC (Respondent) where RSM General Trading LLC had filed a lawsuit in the Dubai Court for unlawful termination of its distributorship by Honasa. In furtherance of the same, RSM General Trading LLC filed a precautionary attachment application against Honasa before the Court of Merits at Dubai, UAE (Dubai Court) for attaching assets of Honasa in UAE and cancellation of trading license of Honasa Consumer General Trading LLC," the company stated in a BSE filing.
"Dubai Court, on June 6, 2024 allowed to attach Honasa's assets in UAE, however, it rejected to cancel the trading license of Honasa Consumer General Trading LLC. Honasa and RSM General Trading LLC filed their respective grievances against the said precautionary order," it also said.
"The company is now in receipt of judgment dated October 1, 2024 passed by the Court of Merits at Dubai wherein the Dubai ourt has rejected the grievances filed by both the Parties and ordered to attach assets of Honasa in UAE along with refusal to cancel the trading license of Honasa Consumer General Trading LLC," Honasa added.
"The order has no financial implications for Honasa due to the judgement passed by Delhi High Court in a Section 9 petition in favour of Honasa as reported on August 21, 2024. The Delhi HC has ordered RSM to withdraw any execution proceeding filed in Dubai, UAE along with depositing Rs 57 crore to the Delhi HC registry. The HC also ordered that if the execution proceedings filed by RSM in Dubai are successful, the deposited amount will be released to Honasa. Since, RSM has not either withdrawn the execution proceedings in Dubai, UAE nor it has deposited Rs 57 crore to the Delhi HC registry, Honasa is in the process of filing contempt proceedings against RSM before the HC for breach of compliance of the court's judgment. Honasa will appeal this order in Dubai, accordingly, this order will have no adverse financial impact on Honasa till the finality of this Appeal proceedings," it further stated.
On the stock-specific front, the counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 31.05. A level below 30 is defined as oversold while a value above 70 is considered overbought.
According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 112.84 against a price-to-book (P/B) value of 12.86. Earnings per share (EPS) stood at 3.95 with a return on equity (RoE) of 11.40.
As of June 2024, promoters held a 35.07 per cent stake in the firm.