Buy Honasa Consumer, target price Rs 400: ICICI Securities

ICICI Securities has a Buy call on Honasa Consumer with a target price of Rs 400. The current market price of Honasa Consumer is Rs 330.2. Honasa Consumer, incorporated in 2016, is a Small Cap company with a market cap of Rs 10706.67 crore, operating in the FMCG sector.

Honasa Consumer's key products/revenue segments include Personal Care for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 554.34 crore, up 3.28% from last quarter Total Income of Rs 536.72 crore and up 13.10% from last year same quarter Total Income of Rs 490.14 crore. The company has reported net profit after tax of Rs 24.98 crore in the latest quarter.

The company's top management includes Mr.Varun Alagh, Mr.Ghazal Alagh, Mr.Vivek Gambhir, Mr.Subramaniam Somasundaram, Ms.Namita Gupta, Mr.Ishaan Mittal. Company has S R Batliboi & Associates LLP as its auditors. As on 31-03-2025, the company has a total of 33 crore shares outstanding.


Investment Rationale
ICICI Securities has cut its EPS estimates of Honasa Consumer for FY26 by 13% due to delay in margin recovery while broadly maintain our FY27 estimates. They expect in revenue/ EBITDA/PAT CAGRs of 16/96/85 (%) over FY25?27E. The brokerage maintains a BUY with a DCF-based target price of Rs 400. At our target price, the stock will trade at 53x FY27E EPS. Key risks: 1) heightened competition, 2) execution miss, 3) low success in scale-up of new brands and 3) continued slowdown in Mamaearth. With pilots showing traction post-Feb rollout, FY26 will be critical to prove execution depth and margin reset potential. I-Sec stays believers and maintains a BUY rating.

Promoter/FII Holdings
Promoters held 34.99 per cent stake in the company as of 31-Mar-2025, while FIIs owned 15.54 per cent, DIIs 18.49 per cent.