Honasa Consumer Limited (HONASA) AI Stock Analysis

• Market Cap: ₹86.71B
• Dividend Yield: N/A
• Average Volume (3M): 27.51K
• Price to Earnings (P/E): 46.5
• Beta (1Y): 0.44
• Revenue Growth: 10.59%
• EPS Growth: 67.55%
• Country: IN
• Employees: 842
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.70
• Shares Outstanding: 325,369,780
• 10 Day Avg. Volume: 14,508
• 30 Day Avg. Volume: 27,511
• PEG Ratio: -2.82
• Price to Book (P/B): 6.48
• Price to Sales (P/S): 3.70
• P/FCF Ratio: 89.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹390.00
• Price Target Upside: 29.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.47
• Revenue Forecast (FY): ₹23.46B

• Rating: 54 Neutral
• Price Target: ₹290.00 ▼(-3.35% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Honasa Consumer Limited's overall stock score is primarily influenced by its financial performance, which shows recovery and growth. However, technical indicators suggest potential short-term weakness, and the high P/E ratio raises concerns about overvaluation. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product strategy, supporting long-term business sustainability.

Operational Efficiency

Improved margins reflect enhanced operational efficiency, which can lead to better profitability and competitive advantage over time.

Debt Management

Improved debt management enhances financial stability and flexibility, allowing the company to invest in growth opportunities.

Negative Factors

Profitability Volatility

Volatile profitability can hinder long-term planning and investment, posing risks to sustained financial health and investor confidence.

Cash Flow Fluctuations

Fluctuating cash flow can impact the company's ability to fund operations and growth consistently, affecting long-term financial stability.

Historical Profitability Volatility

Past volatility in profitability and leverage management can indicate underlying business risks, affecting future financial performance.

Honasa Consumer Limited Business Overview & Revenue Model

Company Description

Honasa Consumer Limited operates as a digital-first beauty and personal care company in India. The company offers baby care, face care, body care, hair care, color cosmetics, and fragrance products under the Mamaearth, The Derma Co., Aqualogica, Ayuga, and Dr. Sheth's brands. It also operates professional salons chain under the BBlunt brand; and Momspresso, a content and community management platform. The company was incorporated in 2016 and is based in Gurugram, India.

How the Company Makes Money

HONASA generates revenue through the sale of its diverse product range across multiple channels, including online e-commerce platforms, retail stores, and direct-to-consumer sales. The company leverages its strong digital presence and marketing strategies to reach a broad audience, particularly targeting millennials and parents. Key revenue streams include direct sales from its brands like Mamaearth and other personal care lines, as well as collaborations with various online marketplaces. HONASA also focuses on strategic partnerships with influencers and social media platforms to enhance brand visibility and drive sales, contributing significantly to its earnings.

Honasa Consumer Limited Financial Statement Overview

Summary

Honasa Consumer Limited has shown consistent revenue growth and improved profitability metrics, with positive net profit margins and enhanced operational efficiency. However, historical volatility in profitability and leverage management remains a concern.

Income Statement

Honasa Consumer Limited has shown consistent revenue growth over the past years, with a notable increase from 2020 to 2025. The gross profit margin has been strong, indicating efficient production and cost management. However, the net profit margin has been volatile, with significant losses in earlier years, although it turned positive in 2025. EBIT and EBITDA margins have also improved significantly from negative to positive, suggesting enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, reflecting better financial leverage management. Return on equity turned positive in 2025, showing improved profitability relative to shareholder investments. Equity ratio has been stable, indicating a solid asset base relative to liabilities, albeit with fluctuations due to past losses impacting equity.

Cash Flow

Free cash flow has shown positive growth, although it has fluctuated over the years. Operating cash flow to net income ratio indicates that operating activities are increasingly supporting profitability. Despite fluctuations in cash flow components, recent years show improved cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.84B	20.67B	19.20B	14.93B	9.43B	4.60B
Gross Profit	15.43B	14.54B	13.34B	8.23B	5.54B	2.83B
EBITDA	2.31B	357.97M	1.87B	-1.10B	323.39M	-13.22B
Net Income	1.32B	726.87M	1.12B	-1.43B	157.15M	-13.32B
Balance Sheet
Total Assets	18.95B	17.90B	16.32B	9.77B	10.35B	3.03B
Cash, Cash Equivalents and Short-Term Investments	5.54B	6.36B	7.48B	2.99B	4.26B	1.85B
Total Debt	1.42B	1.36B	1.31B	921.90M	596.29M	19.74B
Total Liabilities	6.24B	6.10B	5.37B	3.71B	3.29B	20.68B
Stockholders Equity	12.71B	11.80B	10.95B	6.06B	7.06B	-17.65B
Cash Flow
Free Cash Flow	-43.34M	850.67M	2.24B	-632.73M	431.80M	309.87M
Operating Cash Flow	1.62M	1.02B	2.35B	-515.54M	445.88M	320.07M
Investing Cash Flow	106.74M	-1.45B	-4.70B	428.63M	-5.00B	-206.06M
Financing Cash Flow	-177.06M	-311.12M	3.37B	-140.56M	4.81B	-12.77M

Honasa Consumer Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 300.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HONASA, the sentiment is Negative. The current price of 300.05 is above the 20-day moving average (MA) of 296.56, above the 50-day MA of 289.39, and above the 200-day MA of 289.06, indicating a bearish trend. The MACD of -2.41 indicates Positive momentum. The RSI at 32.87 is Neutral, neither overbought nor oversold. The STOCH value of 32.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HONASA.

Honasa Consumer Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLPAL	70 Outperform	₹527.64B	43.58	―	2.42%	-2.06%	-9.74%
MARICO	69 Neutral	₹973.54B	54.57	―	1.42%	22.56%	4.73%
DABUR	66 Neutral	₹813.33B	39.88	―	1.62%	2.68%	1.07%
EMAMILTD	64 Neutral	₹186.13B	18.06	―	1.91%	0.84%	-2.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GODREJCP	59 Neutral	₹1.06T	62.79	―	1.67%	5.77%	―
HONASA	54 Neutral	₹86.71B	46.47	―	―	10.59%	67.55%

Honasa Consumer Limited Corporate Events

Honasa Consumer Limited Acquires Reginald Men Brand to Boost Presence in Men’s Personal Care Market

Honasa Consumer Limited has announced the acquisition of BTM Ventures Private Limited, which owns Reginald Men Brand, a key player in the men’s personal care market. This strategic move positions Honasa to capitalize on the rapidly growing men’s personal care market in India, projected to double by 2032 due to increased premiumization and self-care awareness. The acquisition includes governance and investment structures that ensure Honasa’s influence while allowing founders operational control, with potential for increased stake and structured exit strategies.