Mamaearth parent Honasa's shares jump 5% as Goldman Sachs initiates coverage, sees 26% upside

Honasa Consumer has the highest gross margins in FMCG coverage at 70 percent, but lowest EBITDA margins at 7 percent.

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26 Aug, 2025 12:21

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Mamaearth parent Honasa Consumer's share price surged over five percent in early trade on August 13, after international brokerage Goldman Sachs initiated coverage on the Beauty and Personal Care (BPC) player.

The brokerage said that the "India beauty transformation creates a multi-year growth opportunity". Therefore, it initiated coverage on the player with a buy rating, issuing a target price of Rs 570, indicating an upside of around 26 percent.

At 9.30 am, Honasa Consumer stock was quoting Rs 456.25 on the NSE, higher by a percent compared to its previous close.

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Including Honasa and Minimalist, the combined revenue of five new leading beauty companies grew exponentially 28x over FY19-23, as the beauty space in India is undergoing a transformation.

Goldman Sachs sees two major levers to fuel the 2.5x revenue growth and doubling of EBITDA margins over FY24-30. The portfolio of brands under the Derma skincare brand as well as the offline distribution can be scaled up. The brokerage sees growth opportunity as Honasa doubles its offline distribution to 4,00,000 retail outlets through FY27.

Honasa Consumer has the highest gross margins in FMCG coverage at 70 percent, but lowest EBITDA margins at 7 percent. The brokerages expect that EBITDA margins to increase from 7.1 percent in FY24 to 10.2 percent in FY27 and further 14 percent by FY30.

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