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ICICI Securities Report
Honasa Consumer Ltd. is back in focus after ICICI Securities reiterated a constructive stance on the stock, highlighting improving growth visibility, sharpening execution, and a stronger path to profitability.
The brokerage has hiked its target price to Rs 600, implying a potential upside of 45% from the current market price , underlining rising confidence in the company's medium-term earnings trajectory.
The core pillars of Honasa's strategy – founder-led agility, strengthened corporate governance architecture, and rigorous capital efficiency – remain intact even as its business model undergoes a digital-to-offline evolution.
The brokerage noted that Honasa is not just chasing growth through product launches, but it is also structurally capturing profitable product partitions supported by AI implementation.
ICICI Securities believes Honasa represents a pure-play opportunity in India's expanding beauty and personal care market. It offers a path to generate stable free cash flow with revenue target of ~Rs 5,500 crore at a healthy ~15%+ Ebitda margin.
The brokerage reiterates its high conviction Buy rating and maintain Honasa as its top pick.
Key risks: 1
- heightened competition;
- execution miss;
- low success in scale-up of new brands; and
- any slowdown in Mamaearth.
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