Honasa Consumer Limited Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Honasa Consumer Limited (NSE:HONASA) recently reported its first-quarter numbers. It looks like a credible result overall - although revenues of ₹5.5b were in line with what the analysts predicted, Honasa Consumer surprised by delivering a statutory profit of ₹1.24 per share, a notable 13% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Honasa Consumer

Taking into account the latest results, the consensus forecast from Honasa Consumer's ten analysts is for revenues of ₹22.9b in 2025. This reflects a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 21% to ₹4.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹23.8b and earnings per share (EPS) of ₹5.04 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of ₹507, suggesting the downgrades are not expected to have a long-term impact on Honasa Consumer's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Honasa Consumer analyst has a price target of ₹550 per share, while the most pessimistic values it at ₹400. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 22% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. So although Honasa Consumer is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Honasa Consumer. They also downgraded Honasa Consumer's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Honasa Consumer going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Honasa Consumer's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.