1 hr ago
Honasa Consumer Shares Fall 5% After Block Deals
Honasa Consumer owns beauty and personal-care brands such as Mamaearth and The Derma Co.
Its shares dropped 5% after large block trades.
The report does not say who sold the shares.
Equirus Securities believes the company is improving how it operates.
It expects the company’s newer brands and offline sales to grow.
Equirus also expects profits and returns to improve over time.
Other brokerages are less positive or have different price targets.
This means analysts do not all agree on how well the shares may perform.
Honasa Consumer shares fell 5% following block deals, though the supplied report does not identify the likely seller.
Equirus Securities maintained a positive view, citing better offline execution, focus categories and younger brands.
Equirus expects Mamaearth to grow at a 10% CAGR and The Derma Co at a 20% CAGR after its reset.
The brokerage forecasts Honasa’s EBITDA margin will reach 13% by FY29E, with return on equity rising to 22%.
Brokerage views are mixed: Atiqur Stock Broking recommended Buy at Rs 616, while JPMorgan rated the stock Underweight with a Rs 410 target.
- Who
- Honasa Consumer and the brokerages covering its shares, including Equirus Securities, Atiqur Stock Broking and JPMorgan.
- What
- Honasa Consumer shares fell 5% after block deals, amid differing brokerage views and price targets.
- Where
- When
- The report refers to developments earlier this month and brokerage calls dated September 16 and September 21; the year is not specified.
- Why
- The shares fell after block deals; the report does not definitively identify the seller or provide another stated reason.
Positive brokerage outlook
Cautious brokerage outlook
Business growth
Positive brokerage outlook
Equirus expects improved offline execution, stronger focus categories and scaling younger brands to support growth.
Cautious brokerage outlook
JPMorgan’s Underweight rating indicates a more cautious view of the stock’s prospects, although the report does not provide its detailed reasoning.
Share valuation
Positive brokerage outlook
Equirus set a Rs 595 target, while Atiqur Stock Broking recommended Buy with a Rs 616 target; the Bloomberg consensus target was Rs 559.25.
Cautious brokerage outlook
JPMorgan set a substantially lower Rs 410 target and rated the shares Underweight.
Profitability
Positive brokerage outlook
Equirus forecasts EBITDA margin expansion to 13% and return on equity improvement to 22% by FY29E.
Cautious brokerage outlook
The report provides no specific competing profitability forecast from JPMorgan, but its Underweight rating reflects a less optimistic overall stance.
Key facts
- Share move
- Honasa Consumer shares fell 5% after block deals.
- Equirus rating
- Equirus Securities initiated coverage with a Long rating.
- Equirus target
- Rs 595 for December 2027.
- Consensus target
- The 12-month Bloomberg consensus target price was Rs 559.25, implying about 20% upside from the cited prevailing price.
- Growth outlook
- Equirus expects Mamaearth to grow at a 10% CAGR, The Derma Co at 20%, and younger brands collectively at 27%.
- Profitability outlook
- Equirus forecasts a 314-basis-point EBITDA margin expansion to 13% by FY29E and return on equity of 22%.
- Contrasting ratings
- Atiqur Stock Broking gave a Buy rating with a Rs 616 target, while JPMorgan gave an Underweight rating with a Rs 410 target.
Sources
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