Honasa Consumer - Breaking Boundaries; Initiate With Buy: ICICI Securities

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.‘Honasa’ is derived from Honest, Natural, Safe. We believe its flywheel of ‘Mamaearth’ is replicable in other brands (demonstrated by success of ‘The Derma Co’, etc.). We like the business model (digital-first approach) as it allows for faster product launches (business necessity in beauty and personal care) and efficient resource allocation (in marketing and distribution). Its long-tail strategy (willing to have high number of stock keeping units) is a new template versus conventional fast moving consumer goods.At its current size and scale, it has growth drivers like-offline distribution (including key modern retail) andrelevant low unit packs (let’s say at Rs 50). That said, we reckon scale-up in offline channel would be relatively challenging (versus online) while the niche (natural ingredient-oriented approach) may limit the total addressable market. Buy; target price 550..Click on the attachment to read the full report:.Abhay Aima: Markets, Music And Mysticism.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Honasa Consumer - Breaking Boundaries; Initiate With Buy: ICICI Securities

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Honasa Consumer - Breaking Boundaries; Initiate With Buy: ICICI Securities

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