From mint · A Ksheerasagar · · 1m 30s
Honasa Consumer Shares Surge 54% in 6 Months
HDFC Securities boosts Honasa Consumer target to ₹550 after 54% share rise in six months.
In brief
HDFC Securities boosts Honasa Consumer target to ₹550 after 54% share rise in six months. HDFC Securities maintains Buy rating on Honasa Consumer with ₹550 target after shares rose 54% in six months. Originally reported by mint.
HDFC Securities maintains Buy rating
HDFC Securities maintained its Buy rating on Honasa Consumer, setting a target price of ₹ 550.
“HDFC Securities maintained its Buy rating on Honasa Consumer, setting a target price of ₹ 550”
Mamaearth and The Derma Co. growth
The brokerage cited growth at Mamaearth and The Derma Co., expanding offline reach, and the potential of younger brands.
“The brokerage cited growth at Mamaearth and The Derma Co., expanding offline reach, and the potential of younger brands”
Annual recurring revenue above ₹10 billion
The brokerage highlighted the company’s efforts to sustain strong growth across both Mamaearth and The Derma Co., with annual recurring revenue (ARR) for both brands now above ₹ 10 billion.
“The brokerage highlighted the company’s efforts to sustain strong growth across both Mamaearth and The Derma Co., with annual recurring revenue (ARR) for both brands now above ₹ 10 billion”
Offline retail expansion targets
For offline direct-reach retail, management has set a target of reaching 300,000 outlets by FY31, up from around 120,000 currently.
“For offline direct-reach retail, management has set a target of reaching 300,000 outlets by FY31, up from around 120,00”
Younger brands in ₹1-2 billion revenue band
The younger brands Aqualogica, Dr. Sheth’s, BBlunt, and Reginald are well placed in the ₹ 1-2 billion revenue band.
“The younger brands Aqualogica, Dr. Sheth’s, BBlunt, and Reginald are well placed in the ₹ 1-2 billion revenue band”
Reginald and Staze growth potential
HDFC Securities believes Reginald has strong potential to accelerate growth, supported by its focused positioning in male skincare and relatively limited market presence.
“HDFC Securities believes Reginald has strong potential to accelerate growth, supported by its focused positioning in male skincare and relatively limited market presence”
Shares surge 54% in six months
On Tuesday, shares of the company advanced 12% following its second-quarter business update, taking the stock’s six-month return to 54% and its year-to-date gains to 63%.
“On Tuesday, shares of the company advanced 12% following its second-quarter business update, taking the stock’s six-month return to 54% and its year-to-date gains to 63%”
The bottom line
HDFC Securities maintains Buy rating on Honasa Consumer with ₹550 target after shares rose 54% in six months.
