Honasa Consumer shares fall 5% after block deals; here's list of likely seller
Honasa Consumer has a 12-month Bloomberg consensus target price of Rs 559.25, implying around 20% upside from the prevailing price cited in the source material.
- Sep 29, 2026,
- Updated Sep 29, 2026 10:02 AM IST
Honasa Consumer Ltd shares fell 5% in Tuesday's trade amid high turnover following reports of block deals on the counter. Existing shareholders, including Peak XV Partners Investment VI, Sequoia Capital Global Growth Fund III - US/India Annex Fund, L.P. and Redwood Trust, were looking to offload up to 89 lakh shares through block deals. The floor price for the transaction was set at Rs 450 per share.
Honasa Consumer shares fell 4.61% in Tuesday's trade to hit a low of Rs 445 apiece, compared with the previous close of Rs 466.50. The block deal floor price represented a discount of around 3.5% to Monday's closing price. Jefferies was said to be the sole bookrunner for the transaction. Honasa Consumer had 32.6 crore shares outstanding as of June 30, according to Bloomberg.
The block deal comes amid continued brokerage interest in the beauty and personal care company. Earlier this month, Equirus Securities maintained a positive view on Honasa, saying the company's recent progress reflected an improvement in execution rather than merely benefiting from a weak base.
The brokerage expects near-term growth to be supported by better offline execution, a higher contribution from focus categories and the scaling up of younger brands. Equirus said Honasa's brand-building model, which involves identifying attractive categories, developing hero products and scaling them efficiently, provides a foundation for longer-term growth.
Equirus expects Mamaearth to deliver a 10% CAGR after its reset, while The Derma Co is expected to grow at a 20% CAGR, supported by product extensions and greater offline presence. The brokerage expects Honasa's younger brands to collectively grow at a 27% CAGR, although from a smaller base.
On profitability, Equirus forecast 314 basis points of EBITDA margin expansion to 13% by FY29E, driven by operating-expense optimisation. It expects this to translate into an improvement in return on equity to 22% by FY29E. The brokerage initiated coverage with a 'Long' rating and a December 2027 target price of Rs 595, based on 48 times December 2028E earnings per share of Rs 12.4.
Meanwhile, Honasa Consumer has a 12-month Bloomberg consensus target price of Rs 559.25, implying around 20% upside from the prevailing price cited in the source material. Atiqur Stock Broking had suggested a 'Buy' call with a target of Rs 616 on September 21, while JPMorgan had an 'Underweight' rating with a Rs 410 target on September 16.
Honasa Consumer Ltd shares fell 5% in Tuesday's trade amid high turnover following reports of block deals on the counter. Existing shareholders, including Peak XV Partners Investment VI, Sequoia Capital Global Growth Fund III - US/India Annex Fund, L.P. and Redwood Trust, were looking to offload up to 89 lakh shares through block deals. The floor price for the transaction was set at Rs 450 per share.
Honasa Consumer shares fell 4.61% in Tuesday's trade to hit a low of Rs 445 apiece, compared with the previous close of Rs 466.50. The block deal floor price represented a discount of around 3.5% to Monday's closing price. Jefferies was said to be the sole bookrunner for the transaction. Honasa Consumer had 32.6 crore shares outstanding as of June 30, according to Bloomberg.
The block deal comes amid continued brokerage interest in the beauty and personal care company. Earlier this month, Equirus Securities maintained a positive view on Honasa, saying the company's recent progress reflected an improvement in execution rather than merely benefiting from a weak base.
The brokerage expects near-term growth to be supported by better offline execution, a higher contribution from focus categories and the scaling up of younger brands. Equirus said Honasa's brand-building model, which involves identifying attractive categories, developing hero products and scaling them efficiently, provides a foundation for longer-term growth.
Equirus expects Mamaearth to deliver a 10% CAGR after its reset, while The Derma Co is expected to grow at a 20% CAGR, supported by product extensions and greater offline presence. The brokerage expects Honasa's younger brands to collectively grow at a 27% CAGR, although from a smaller base.
On profitability, Equirus forecast 314 basis points of EBITDA margin expansion to 13% by FY29E, driven by operating-expense optimisation. It expects this to translate into an improvement in return on equity to 22% by FY29E. The brokerage initiated coverage with a 'Long' rating and a December 2027 target price of Rs 595, based on 48 times December 2028E earnings per share of Rs 12.4.
Meanwhile, Honasa Consumer has a 12-month Bloomberg consensus target price of Rs 559.25, implying around 20% upside from the prevailing price cited in the source material. Atiqur Stock Broking had suggested a 'Buy' call with a target of Rs 616 on September 21, while JPMorgan had an 'Underweight' rating with a Rs 410 target on September 16.