Honasa Consumer shares: Why brokerages see up to 38% upside in the Mamaearth parent?

Brokerage firms continue to remain positive on Honasa Consumer, the parent company Mamaearth, which has emerged as one of India’s leading digital-first beauty and personal care companies through its multi-brand strategy spanning skincare, haircare, baby care, cosmetics and fragrances.

Led by its strong growth in its core and emerging brands, expanding offline distribution and improving profitability, the company is increasingly being viewed by brokerages as a long-term consumer play benefiting from premiumisation and rising demand for personal care products. They see up to 38 per cent upside potential.

Honasa Consumer has built a seven-brand ‘House of Brands’ in beauty and personal care, spanning baby care, face care, body care, hair care, colour cosmetics and fragrances, said SBI Securities. It said its omni-channel model stays digital-first in the early stages of a brand or product before selective offline expansion after trials and market acceptance.

SBI Securities said Honasa reported strong 4QFY26 numbers, with revenue rising 23.2 per cent year-on-year to Rs 657 crore, while Ebitda and net profit increased about 2.9 times each. Ebitda margin expanded 666 basis points to 11.7 per cent, underlying volume growth was 30 per cent, and the company continued to operate with negative working capital.

Honasa Consumer HCL is one of the largest digital-first beauty and personal care (BPC) companies in India with a diversified portfolio of brands offering differentiated propositions to cater to distinct consumer needs. It houses brands such as Mamaearth, The Derma Co., Aqualogica, BBlunt, Dr. Sheth’s, Ayuga and Staze.

Mamaearth, the company’s core cash engine, grew in the mid-teens in the quarter. Management is confident of delivering double-digit CAGR over the next five years, driven by distribution expansion and market share gains in core categories. Focus categories grew about 35 per cent year-on-year, while younger brands rose about 40 per cent, or 28 per cent excluding Reginald Men.

SBI Securities said the outlook remains structurally positive, backed by premiumisation, innovation, channel mix optimisation, offline expansion and operating leverage. It pencils high-teens CAGR over five years and 100 basis points of annual margin expansion, it said with a ‘buy’ rating and a target price of Rs 475. Risks include high competition, slower execution and delays in scaling the offline channel.

Shares of Honasa Consumer gained more than 2.8 per cent to Rs 420, commanding a market capitalization of more than 13,500 crore. The stock is marginally shy of its 52-week high at Rs 424.55 hit on May 29, 2026. The has jumped nearly 20 per cent in the last one month, while it is up nearly 50 per cent in 2026 so far.

Overseas brokerage Jefferies has cited Honasa’s rebound from its past issues of a growth slowdown and an inventory correction, along with a strategic shift to revive growth in Mamaearth, and a over 20 per cent growth in younger brands as some of the key reasons behind the stock’s inclusion in this list. Demand slowdown and increased competition from new players is a key risk.

With the management having guided for revenue growth in the high-teens and 100 basis points of annual Ebitda margin expansion over the next five years, Jefferies sees Honasa as a ‘strong compounding story’ in the making. It anticipates a 18 per cent revenue CAGR over financial year 2026-2029 and a near-23 per cent Ebitda CAGR during the same period. It has a price target of Rs 565.

Honasa Consumer reported a 178 per cent year-on-year (YoY) jump in the net profit at Rs 69.44 crore, while revenue from operations increased 23 per cent YoY to Rs 675.09 crore. Its Ebitda soared 186 per cent YOY to Rs 77.1 crore, while margins improved to 11.75 per cent for the quarter. The company announced a maiden dividend of Rs 3 per share.

Among other brokerage firms, Emkay Global Financial Services has a ‘buy’ rating on Honasa Consumer with a target price of Rs 500, while Antique Stock Broking has a ‘buy’ rating on it with target price of Rs 462. JM Financial, which also has a ‘buy’ rating on the stock, but has a target price of Rs 420.