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

Honasa Consumer, the parent company of Mamaearth, reached a 52-week high of ₹501.60 on Friday, August 14, on the National Stock Exchange before closing at ₹502.80, marking a 4.87% increase. Over 2.24 crore shares were traded, generating approximately ₹1,114 crore during the session. The company's market capitalization stood at around ₹16,366 crore at the close.

Honasa's impressive performance follows its highest-ever quarterly revenue and profit, with a reported revenue of ₹756 crore and ₹785 crore on a like-for-like basis, representing a 32% year-on-year increase. EBITDA more than doubled to ₹110 crore, with operating margins expanding to 14.1%. Profits after tax rose to ₹90 crore, marking a surge of over 116% year-on-year.

Following the strong results, investment houses HDFC Securities, Share.Market by PhonePe, and JM Financial maintained BUY ratings on Honasa. HDFC Securities has set a June 2027 target price of ₹550, while JM Financial increased its target price to ₹560 from the previous ₹485, citing the company's robust Q1 performance and optimistic outlook. JM Financial also revised its FY27–29 earnings estimates upward by 15 to 19%.

Analysts highlight that while the technical trend remains bullish, with the stock trading above its 20-day, 50-day, and 200-day moving averages, prospective buyers may consider waiting for a consolidation or minor pullback towards these support levels due to the sharp post-earnings surge. JM Financial noted the company's adjusted EBITDA margin of around 13% outperformed their estimate of 12.5%, driven by a better channel mix and seasonal tailwinds. The brokerage expects high-teen revenue growth and sub-30% earnings CAGR over FY26–29.

Mamaearth's acceleration in sales growth contributed to the positive outlook, with the younger brands collectively growing at 40%. The The Derma Co surpassed an annualised revenue run rate of ₹1,000 crore. Both general trade and modern trade expanded over 40% each, while eCommerce grew by over 20%. The stock has delivered approximately 75% returns over the past year, outpacing the Nifty 500's gain of around 4% in the same period.

During mid-session, the sell side order book comprised 72% of the trades, compared to 28% on the buy side, reflecting some profit-taking near the 52-week high. The stock's P/E ratio stands at around 62.7 times.