Honasa Consumer's shares saw a significant recovery, surging over 7% after a recent earnings setback.
The stock had previously experienced a sharp decline, falling 40% in a month and over 50% in the last three months, dipping below its IPO price of Rs 324.
The rally comes amid increased investor interest, as trading volumes exceeded the one-month average.
Despite the rebound, Honasa's market capitalization remains below the $1 billion mark.
The company, known for its D2C brand Mamaearth, reported its first quarterly loss since going public, with a loss of Rs 18.5 crore for the September quarter, a stark contrast to the Rs 40 crore profit from the previous quarter and a 163% decline from the Rs 29.4 crore profit recorded in the same period last year.
Investors are cautiously optimistic about the sustainability of this recovery amid ongoing concerns regarding growth in the consumption sector.