Archive · 8 Oct 2026
HDFC Securities Maintains Buy Rating as Honasa Shares Rally
HDFC Securities says investors should consider buying shares of Honasa Consumer, the company behind Mamaearth.
It set a target price of ₹550.
Honasa shares rose 12% on Tuesday after the company shared an update about its business.
The shares have gained 54% over six months and 63% so far this year.
Honasa says its sales are growing across several brands, including Mamaearth and The Derma Co.
It plans to reach more shops, increasing its direct retail outlets from about 120,000 to 300,000 by FY31.
For the second quarter of FY27, it expects sales to grow in the low 30s year over year.
It also expects an early double-digit operating margin.
These are company expectations, not guaranteed results.
HDFC Securities maintained its Buy rating on Honasa Consumer with a ₹550 target price.
Honasa shares rose 12% on Tuesday, bringing six-month gains to 54% and year-to-date gains to 63%.
The brokerage said Mamaearth and The Derma Co. each have annual recurring revenue above ₹10 billion.
Honasa aims to expand its offline direct-reach presence from about 120,000 outlets to 300,000 by FY31; modern-trade penetration is 95%.
For Q2FY27, the company expects net sales value growth in the low 30s, Mamaearth growth in the high teens, younger-brand growth around the mid-40s, and an early double-digit operating margin.
- Who
- Honasa Consumer, HDFC Securities, and investors in Honasa shares.
- What
- HDFC Securities maintained a Buy rating on Honasa Consumer and set a ₹550 target price; the company also provided Q2FY27 business expectations.
- When
- The report and share move were described on Tuesday; the outlook is for Q2FY27.
- Where
- The article discusses Honasa Consumer shares and its retail presence in India.
- Why
- HDFC Securities cited growth across Honasa's brands, expansion in offline channels, and the potential to scale younger brands.
Positive outlook
Risks and limitations
Growth prospects
Positive outlook
HDFC Securities highlighted growth across established and younger brands, and said Honasa's offline expansion and brand playbook could support further scaling.
Risks and limitations
The article notes that Honasa operates in a competitive landscape; the growth and margin figures cited for Q2FY27 are company expectations rather than reported results.
- Brokerage rating
- Buy, maintained by HDFC Securities
- Target price
- ₹550
- Share performance
- Up 54% in six months and 63% year to date; rose 12% on Tuesday
- Brand ARR
- Mamaearth and The Derma Co. each have annual recurring revenue above ₹10 billion
- Offline outlet goal
- 300,000 direct-reach outlets by FY31, compared with about 120,000 currently
- Modern trade
- 95% penetration, according to the article
- Q2FY27 expectations
- Net sales value growth in the low 30s year over year and an early double-digit operating margin