Honasa shares rise nearly 2% as strong Q2 results draw mixed analyst calls
The Honasa stock has gained nearly 75% over the past year and trades at a P/E of 53.67x
Honasa Consumer Ltd shares rose nearly 2% to ₹478.40 on Monday following strong Q2 results, according to wire service reports. The stock opened at ₹485 and peaked at ₹493.90 before settling back down, with trading volume reaching 47.55 lakh shares. Sell-side orders accounted for 70.52% of the order book. Analysts reacted with mixed opinions on the company's strong performance.
Jefferies upgraded its rating to Buy and increased its target price to ₹700, citing robust brand and channel momentum and improved margins. Citi maintained a Sell rating, however, with a target price of ₹390, arguing that the current valuation already accounts for sustained growth and margin expansion, which it deems challenging to maintain due to intensifying competition and elevated advertising costs.
Honasa reported Q2FY27 revenue of ₹731 crore, a 35.9% year-over-year increase, marking its highest growth rate since listing. EBITDA nearly doubled to ₹93 crore, with profit after tax surging 86.7% to ₹73 crore. Brand Mamaearth maintained high-teens growth, while younger brands like The Derma Co and Aqualogica grew over 45% year-over-year.
Both general trade and modern trade secondary sales surged over 40%. Management expects margins to settle around 12.5% in the second half, aiming for a four-year target of 15%.
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