Honasa Consumer is making a decisive push into men's personal care, noted brokerage firm HSBC. The company has agreed to buy 95% of BTM Ventures Pvt. Ltd., the parent of Reginald Men, for an enterprise value of Rs 195 crore through a secondary purchase. The remaining 5% will be picked up after a year, based on pre-set valuation terms.
The deal implies valuation multiples of 2.6 times revenue and 10.9 times Ebitda, but Honasa's bigger bet is on the growth runway of the category itself.
However, HSBC is not assigning any additional value to the Reginald Men acquisition for now. It has cut its target price to Rs 242 (from Rs 264) and maintained its 'reduce' rating, with estimates broadly unchanged.
A Category Set To Double
Honasa pegs India's men's personal care market at Rs 20,000 crore today, likely to double by 2032. Reginald Men, founded by Trisha Reddy Talasani and based in Hyderabad, already has strong traction in the South, which accounts for 80% of its sales.
Launched in August 2022, the brand offers curated grooming products — from face wash and lip balms to hair serums — with sunscreen as its anchor category, aligning well with Honasa's focus areas.
More Brands, More Bandwidth Pressure
Despite the expansion, HSBC remains cautious. The brokerage argues that while Honasa is widening its addressable market, it is also stretching itself thin. With new brands entering the fold, the execution probability for existing brands is falling, especially when several initiatives — even at Mamaearth — are still underway. For a more constructive view, HSBC says it needs to see sustained, high double-digit organic growth in Honasa's core brands.
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