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HONASA: Fair Outlook Will Balance Lower Risk And Expansion Moves

Google And Meta Risks Coupled With Regulation Will Hinder Prospects

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HONASA
AnalystLowTarget
Not Invested
Published 15 Jul 2025

Update shared on 16 Dec 2025

Fair value Increased 2.98%
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AnalystLowTarget's Fair Value
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1Y
1.9%
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Narrative Update on Honasa Consumer

The analyst fair value estimate for Honasa Consumer has been raised modestly from ₹235 to ₹242 per share, as analysts factor in a lower perceived risk profile via a reduced discount rate and slightly better margin outlook, partly offset by more conservative revenue growth and future valuation multiples.

What's in the News

  • A board meeting is scheduled on December 11, 2025 to consider acquiring BTM Ventures Private Limited, which operates the men focused personal care brand Reginald Men. This indicates a potential strategic expansion into the male grooming segment (company filing).
  • A board meeting is set for November 12, 2025 to review and approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, signaling upcoming earnings disclosures (company filing).
  • At the November 12, 2025 board meeting, directors will also evaluate acquiring 25 percent of Couch Commerce Private Limited, owner of Fang Oral Care, via subscription to compulsory convertible preference shares for up to INR 10 crore. This highlights continued portfolio diversification into oral care (company filing).

Valuation Changes

  • Fair Value Estimate has risen slightly from ₹235 to ₹242 per share, reflecting a modest upward revision to intrinsic value.
  • Discount Rate has fallen slightly from 14.13 percent to 13.54 percent, indicating a marginally lower perceived risk profile.
  • Revenue Growth Assumption has declined slightly from 12.71 percent to 11.71 percent, reflecting a more conservative top line outlook.
  • Net Profit Margin Assumption has increased moderately from 6.31 percent to 6.94 percent, signaling expectations of improved profitability.
  • Future P/E Multiple has decreased moderately from 59.27x to 53.64x, pointing to a more conservative valuation multiple applied to future earnings.

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