Honasa shares hit 52-week high as JM Financial, HDFC Securities turn bullish

Honasa Consumer, the parent company of Mamaearth, achieved a 52-week high for its shares on the National Stock Exchange on August 14, reaching ₹501.60 before settling around ₹489.50, a 2.1% increase from mid-session. Over 1.27 crore shares traded, yielding roughly ₹631 crore by 12:15 pm. The surge follows Honasa's record-breaking quarterly revenue and profit, with reported revenue of ₹756 crore and like-for-like revenue of ₹785 crore, representing a 32% year-on-year growth.

EBITDA more than doubled to ₹110 crore, with margins expanding to 14.1%. Profit after tax surged by over 116%, up to ₹90 crore, marking a significant year-on-year increase. Both HYCM Securities and JM Financial rated the stock a BUY following the results, with JM Financial raising its target price to ₹560 from ₹485. The company's adjusted EBITDA margin surpassed estimates, supported by better channel mix and seasonal tailwinds.

Mamaearth's sales growth accelerated to high-teens in Q1, up from mid-teens in Q4 FY26, and management expects revenue growth exceeding the company's five-year high-teens CAGR in FY27, with further margin expansion expected. The younger brands of Honasa, including The Derma Co, Aqualogica, Dr. Sheth’s, BBlunt, Staze, and newly acquired Reginald Men, grew collectively by 40%.

The Derma Co alone surpassed an annualised revenue run rate of ₹1,000 crore. The stock's performance over the past year has seen a 75% return, outperforming Nifty 500's 4% gain during the same period. The sell-side order book showed 72% on the sell side versus 28% on the buy side, indicating profit-taking near the 52-week high. The share carries a P/E ratio of around 62.7 times.