Honasa Consumer shares rise 14% after Q1 results; should you buy, sell or hold

Honasa Consumer shares surged 14 per cent during the trading session on Wednesday after the company saw some positive brokerage reports and upgrades after announcing its quarterly results on Tuesday. However, some brokerage firms continue to remain negative on the counter as well.
 

Honasa Consumer stock price

Shares of Honasa Consumer jumped 13.68 per cent during the trading session on Wednesday to hit Rs 304.80. The total market capitalization of the company briefly hit Rs 9,500 crore. The stock had settled at Rs 268.10 on Tuesday.  The stock is down nearly 50 per cent from its 52-week high at Rs 546.50, hit in September 2024.
 

Q1 results

Honasa Consumer posted a net profit of Rs 41 crore for the June 2025 quarter, up 2.7 per cent on a year-on-year (YoY) basis. Its revenue rose 7 per cent YoY to Rs 595 crore, but Ebitda came in flat at Rs 46 crore. However, margins dropped to 7.7 per cent for the reported period.
 

Brokerage views

Overseas brokerage firm CLSA has upgraded Honasa Consumer to 'Outperform' citing  in line results with underlying volume growth of 10.5 per cent YoY. Growth was impacted by the early onset of the monsoon, which hurt sunscreen sales. The Hong Kong-based brokerage also raised its price target to Rs 333.

Another global brokerage firm, Jefferies also maintained a 'buy' rating on Honasa Consumer with a price target of Rs 400, citing positive surprises on margins. The brokerage said that unseasonal rains impacted revenue growth, particularly in the sunscreen segment, but Honasa still delivered sequential margin improvement and a beat on expectations.

Honasa's overall profitability was stable during the quarter, which is expected to improve with operating scale in younger brands, said ICICI Securities. "Scaling up of younger brands driven by new product developments and sustained improvement in Mamaearth’s performance on the back of route to market changes, may drive healthy performance," it said with a 'buy' rating and a target price of Rs 400.

Any re-rating in the stock hinges on the growth trajectory, said Emkay Global Financial Services . "The management target of 100-150bps margin improvement is achievable, albeit dependent on sustaining growth momentum," the brokerage added with a 'sell' rating on the stock with a target price of Rs 250.
 

Honasa Consumer IPO

Honasa Consumer, the parent company of Mamaearth had raised a total of Rs 1,701.44 crore via IPO in November 2023. The company had sold its shares at Rs 324 apiece. However, the stock is currently trading below its issue price but had delivered decent gains before the stock saw a sharp carnage n the last 11 months.