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Jefferies bets on Honasa
Jefferies reiterated its “Buy” rating on the stock and maintained a price target of ₹585 per share, citing the company’s renewed focus on artificial intelligence, product segmentation and distribution expansion.
According to Jefferies, the company’s “Honasa 2.0” strategy is aimed at delivering industry-leading revenue and EBITDA growth, with operating margins expected to expand beyond 15% over time.
CLSA maintains “Outperform” rating
CLSA also maintained its ‘Outperform’ rating on the stock with a price target of ₹462 per share after the management outlined its medium-term growth plans during the analyst meet.
The brokerage said Honasa expects its revenue to exceed ₹55 billion by financial year 2031 while delivering an EBITDA margin of more than 15%, implying revenue and EBITDA CAGR of 18% and 28%, respectively, between financial year 2026 and 2031.
Honasa’s management highlighted a strategy centered on faster and more accurate product innovation, enhanced product quality, personalised marketing and wider distribution reach, supported by investments in technology capabilities.
CLSA expects margin expansion to be driven by an improving channel mix and operating leverage, particularly on advertising and promotional spending as well as other operating expenses. The brokerage also raised its financial year 2027-2029 earnings estimates by 6% – 14% to reflect a stronger margin outlook.
13 analysts have coverage on Honasa Consumer with eight of them having a “buy” rating, one has a “hold” rating and four have a “sell” rating. The stock has a consensus price target of ₹441.4, implying an upside potential of around 6% from current levels.
Shares of Honasa Consumer are trading 0.8% higher on Thursday at ₹418.35. The stock has risen nearly 20% in the last one month.
