ICICI Securities maintains buy on Honasa Consumer at ₹720 target
ICICI Securities is still backing Honasa Consumer (the company behind Mamaearth and The Derma Co.) with a "Buy" rating and a ₹720 target price.
Their latest quarterly results were strong: revenue jumped 27% year over year, thanks to solid growth from both existing and newer brands.
This performance has eased earlier worries about Mamaearth's momentum and Honasa's ability to scale up.
Honasa EBITDA 2.5x derma co ₹10bn
Honasa's EBITDA rose ~2.5x YoY this quarter, hitting ₹1.1 billion with healthy margins at 14.1%.
The Derma Co. crossed ₹10bn ARR, while the company's younger brands grew more than 40%.
With these numbers, analysts have raised their future earnings estimates for Honasa, and the company looks set for more growth as it expands into new categories and offline distribution.