Buy Honasa Consumer; target of Rs 400: ICICI Securities

ICICI Securities is bullish on Honasa Consumer has recommended buy rating on the stock with a target price of Rs 400 in its research report dated November 13, 2025.

Broker Research

November 18, 2025 / 16:18 IST

Buy

26 Aug, 2025 12:21

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ICICI Securities's research report on Honasa Consumer

Honasa’s Q2FY26 performance reaffirms its focus on building category depth, scaling younger brands, and strengthening distribution reach. Mamaearth is back to growth (LFL: double digit) and sustained traction across younger brands such as The Derma Co. underscoring portfolio resilience, while continued innovation and selective entry into premium segments strengthened category relevance. Expanding offline footprint, improving mix and disciplined cost control supported steady margin progression in Q2. With younger brands now contributing >50% of revenue, new initiatives such as Luminéve in premium skincare and Fang in oral care broaden Honasa’s play in emerging adjacencies. The business enters H2FY26 on a steady footing, with margin tailwinds and broad-based brand momentum likely to drive healthy performance ahead. BUY.

Outlook

Maintain BUY with DCF-based target price of INR 400 as we roll forward to Sep’27E. At our TP, the stock could trade at 59x Sep’27E EPS. Key risks: 1) Heightened competition, 2) execution miss, 3) low success in scale-up of new brands and 4) continued slowdown in Mamaearth.

For all recommendations report, click here