Mamaearth-parent Honasa Consumer shares jump 38% in two sessions; here's what analysts say

Shares of Honasa Consumer Ltd, Mamaearth's parent, extended their sharp gains for the second consecutive session in Friday's trade. The stock jumped 15.27 per cent to hit an all-time high of Rs 487. At this price, the scrip has gained 38.31 per cent in just two days.

Honasa said its topline for the quarter grew 21 per cent, year-on-year (YoY), to Rs 496 crore and that like-for-like growth from continuing business stood at 24 per cent. The sales growth was aided by a 27 per cent YoY jump in volumes.

The remains confident of delivering a 30 per cent-plus revenue growth going forward, similar to that in H1 FY24. It expects Ebitda margins to keep improving on a YoY basis over the coming years, led by operating leverage and further optimisation of ad-spends.

Analysts at Jefferies have raised their target price on the counter to Rs 530 from Rs 520 earlier. They have also upgraded the earnings per share (EPS) by 5-6 per cent on strong topline and margin.

"We value Honasa Consumer at 6 times September 2025 EV/sales. While there was a growth deceleration from Q1, the management attributed this to ERP changeover and hence, H1 growth of over 35 per cent reflects the true picture. New brands are scaling up well, with Dr Sheth now the fourth brand to cross Rs 150 crore ARR," Jefferies stated.

"Investing behind brands and distribution expansion however remain a key focus area and would see continued investments," it added.

On technical setup, support on the counter could be seen at Rs 442.

"Honasa Consumer is bullish but also overbought on daily charts with next resistance at Rs 558. Investors should book profits at current levels as a daily close below support of Rs 442 could lead to Rs 339 in the near term," said AR Ramachandran from Tips2trades.

"Since November 10, the counter has been making higher highs and higher lows on hourly charts, which is a sign of bullish bias. One needs to stay cautious since it is trading way above the 21- and 50-EMA. In the coming few sessions, we may see some cool of till Rs 425. As we advance, one may add fresh longs in the zone of Rs 425–430 for upside targets of Rs 510–520 with a stop-loss of Rs 385," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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