HSBC Turns Up the Dial: Honasa Consumer Gets a Modest Price Target Lift

Unknown Apr 02, 2026 800 Views

Honasa Consumer Ltd, the parent company of Mamaearth, is back in the spotlight as HSBC has marginally raised its target price to ₹207 from ₹206, reflecting cautious optimism after the company’s recent quarterly results. The move comes as Honasa’s stock rebounded sharply—up over...

Key Highlights

Target Price Revision: HSBC’s new target price of ₹207 is a modest increase, signaling restrained confidence amid ongoing sector challenges and Honasa’s evolving growth strategy.
Recent Performance: Honasa Consumer posted a 13% year-on-year revenue jump to ₹534 crore in the latest quarter, with underlying volume growth at 21.2%. However, net profit slid 18% to ₹25 crore, and EBITDA margins contracted to 5% from 7% a year ago.
Mamaearth’s Role: The core Mamaearth brand, which accounts for about 70% of Honasa’s business, showed double-digit growth, helping to drive the company’s overall recovery. Still, analysts remain cautious as margin improvement continues to lag expectations.
Analyst Sentiment: While HSBC’s adjustment is minor, other brokerages like Emkay Global have also raised their targets (to ₹225), citing improved revenue trends but maintaining a ‘Sell’ rating due to margin pressures and the need for sustained growth.
Stock Movement: The stock surged to ₹314.85 after the results, recovering from previous lows and nearing its IPO price, though it remains below its peak and faces ongoing scrutiny over profitability and brand strategy.
Outlook: HSBC and other analysts highlight the need for clearer growth plans for Mamaearth and continued cost discipline before a more decisive upgrade in ratings.

Honasa’s incremental target price hike from HSBC reflects a market in wait-and-watch mode—encouraged by green shoots of growth, but wary of profitability hurdles ahead.

Sources: Investing.com, CNBC TV18, Economic Times

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