Honasa Consumer's Strong Q4 Performance Sparks Optimism Among Analysts
Can Honasa shares rally up to 57% after strong Q4 show? Jefferies, CLSA & two other brokerages weigh in
Image: The Economic Times
Honasa Consumer reported a significant 177% year-on-year increase in consolidated net profit for Q4 FY26, reaching ₹69 crore. Brokerages like Jefferies and CLSA are optimistic, with Jefferies setting a target price of ₹565, indicating a potential 57% upside. The company's growth is attributed to strong performance across various sales channels and effective management strategies.
- 01Honasa's revenue from operations rose over 23% YoY to ₹657 crore in Q4 FY26.
- 02Jefferies expects EBITDA margins to improve by 100 basis points annually due to lower operating expenses.
- 03CLSA maintains an 'Outperform' rating with a target price of ₹434, indicating a 21% upside.
- 04ICICI Securities set a target price of ₹500, highlighting Mamaearth's return to sustainable growth.
- 05JM Financial raised its target price to ₹420, citing strong momentum in younger brands and mid-teen sales growth in Mamaearth.
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Honasa Consumer has rebounded strongly after a period of distribution realignment, as evidenced by its Q4 FY26 results, which showcased a remarkable 177% year-on-year increase in consolidated net profit, reaching ₹69 crore. The company's revenue from operations also saw a 23% YoY increase, totaling ₹657 crore. Following these results, investor sentiment surged, with the stock price rising over 10%. Jefferies, an international brokerage, has set a target price of ₹565, suggesting a potential 57% upside, while highlighting strong growth across various sales channels, particularly in e-commerce and modern trade. CLSA has rated the stock as 'Outperform' with a target of ₹434, noting that Mamaearth's growth momentum is expected to continue. Meanwhile, ICICI Securities and JM Financial have also expressed optimism, with target prices of ₹500 and ₹420, respectively. The overall outlook remains positive, driven by effective management strategies and a focus on innovation and product re-innovation.
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The strong financial performance of Honasa Consumer could positively affect investor confidence and stock market dynamics in the consumer sector.
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