Honasa Consumer Limited has received a Buy recommendation from ICICI Securities, with the brokerage assigning a target price of Rs 550 per share.
At the current market price of Rs 409.60, the target indicates a potential upside of 34.28 percent.
The stock was trading down 1.37 percent from its previous close of Rs 415.30. The company has a market capitalization of Rs 13,327.15 crore.
Growth outlook improves
ICICI Securities said prospects for Honasa Consumer are improving as Mamaearth continues to recover after a distribution reset.
Demand has picked up in key categories, including facewash and shampoo. Wider distribution and better execution in offline channels have also supported growth.
The brokerage believes growth is now being driven by consumer demand rather than inventory restocking.
Another growth driver is The Derma Co., which is expanding beyond its core offerings.
The brand has entered larger categories such as:
- Cleansers
- Hair care
Its presence across online and offline channels is providing long-term growth visibility.
Margin profile remains healthy
ICICI Securities also highlighted the company’s:
- Strong gross margins
- Improving profitability
- Positive cash flows
- Disciplined capital allocation
The brokerage said newer categories could create additional growth opportunities. These include:
- Nutraceuticals
- Oral beauty products
- Men’s grooming products
Brand portfolio
Honasa Consumer operates a portfolio of beauty and personal care brands, including:
- Mamaearth
- The Derma Co.
- Aqualogica
- Dr. Sheth’s
- BBlunt
- Staze
The company sells products across skincare, haircare, baby care and wellness segments.
Honasa Consumer follows a digital-first model and has expanded its offline distribution network in recent years. It is best known as the parent company of Mamaearth and targets millennial and Gen Z consumers.
Q4 FY26 results
Revenue rose to Rs 657 crore in Q4 FY26, compared with Rs 534 crore in the same period a year earlier, marking a growth of 23.03 percent.
Net profit climbed to Rs 69 crore from Rs 25 crore, registering a growth of 176 percent.
Over the last five years, the company recorded:
- Revenue CAGR of 39 percent
- Net profit CAGR of 17 percent
Key financial metrics
- ROCE: 19.2 percent
- ROE: 15.7 percent
- EPS: Rs 6.15
- Debt-to-equity ratio: 0.10x
TL;DR:
ICICI Securities has maintained a Buy rating on Honasa Consumer and set a target price of Rs 550, implying a 34.28 percent upside. The brokerage expects growth to be supported by Mamaearth’s recovery, expansion of The Derma Co. and improving profitability.
AI summary:
- ICICI Securities assigned a Buy rating to Honasa Consumer.
- The brokerage’s target price of Rs 550 implies 34.28 percent upside.
- Mamaearth’s recovery and The Derma Co.’s expansion support growth.
- Q4 FY26 revenue rose 23.03 percent to Rs 657 crore.
- Net profit increased 176 percent to Rs 69 crore.
