Synopsis: Honasa Consumer received a Buy rating from ICICI Securities with 34.28% upside potential, driven by Mamaearth’s recovery, Derma Co’s expansion, strong margins, and growth initiatives.
This Small-Cap Stock, engaged in developing, marketing, and selling beauty, personal care, baby care, and wellness products through digital and offline channels, is in focus after ICICI Securities gave a buy target of Rs. 550, which has an upside potential of 34.28 percent.
With a market capitalization of Rs. 13,327.15 crore, the shares of Honasa Consumer Limited were currently trading at Rs. 409.60 per equity share, down nearly 1.37 percent from its previous day’s close price of Rs. 415.30.
What is the News?
ICICI Securities, a prominent brokerage firm, has recommended a “Buy” call on Honasa Consumer Limited with a target price of Rs. 550 per share, indicating an upside potential of 34.28 percent from its current price of Rs. 409.60 per share.
Honasa Consumer’s growth outlook is improving as its flagship brand, Mamaearth, continues to recover after the distribution reset. The company is witnessing stronger demand across key categories such as facewash and shampoo, supported by expanding distribution reach and better execution in offline channels. This suggests that growth is becoming more sustainable and driven by real consumer demand rather than inventory restocking.
Another key growth driver is The Derma Co, which is evolving into a profitable and scalable skincare franchise. The brand is expanding beyond its core products into larger categories like cleansers and hair care, helping diversify revenue sources. Strong traction across online and offline channels supports long-term growth visibility.
The company also benefits from strong gross margins, improving profitability, positive cash flows, and disciplined capital allocation. Continued innovation in emerging categories such as nutraceuticals, oral beauty, and men’s grooming provides additional growth opportunities, supporting confidence in future earnings and valuation expansion.
Brands & Businesses
Honasa Consumer Limited owns a diverse portfolio of beauty and personal care brands, including Mamaearth, The Derma Co., Aqualogica, Dr. Sheth’s, BBlunt, Staze, and others. The company focuses on skincare, haircare, baby care, and wellness products, catering to a wide range of consumer needs. Through continuous product innovation, strong digital presence, and expanding offline distribution, Honasa Consumer is strengthening its position in India’s fast-growing beauty and personal care market.
Company Overview
Honasa Consumer Limited is an Indian beauty and personal care (BPC) company that operates as a “house of brands” with a digital-first focus. It is best known as the parent of Mamaearth and several other skincare and haircare brands targeting millennial and Gen Z consumers. The company has rapidly grown from a D2C startup to a listed FMCG-style player in India’s BPC market.
Recent Quarter Results
Coming into financial highlights, Honasa Consumer Limited’s revenue has increased from Rs. 534 crore in Q4 FY25 to Rs. 657 crore in Q4 FY26, which has grown by 23.03 percent. The net profit has also grown by 176 percent from Rs. 25 crore in Q4 FY25 to Rs. 69 crore in Q4 FY26. Honasa Consumer Limited’s revenue and net profit have grown at a CAGR of 39 percent and 17 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 19.2 percent and 15.7 percent, respectively. Honasa Consumer Limited has an earnings per share (EPS) of Rs. 6.15, and its debt-to-equity ratio is 0.10x.
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