Stock to BUY: Jefferies super bullish on this personal care company, target implies 55% upside

Shares of Honasa Consumer Ltd., the company behind Mamaearth, continued to see buying interest on Thursday, rising about 6–7 per cent to trade above Rs 300. The uptrend follows the company’s strong September quarter performance, which impressed the Street and prompted several brokerages to raise their target prices.

Honasa, India’s largest digital-first beauty and personal care company, manages six brands, including Mamaearth, BBlunt, Dr Sheth’s, and Aqualogica. After a volatile year in which the stock swung between a high of Rs 547 (September 2024) and a low of Rs 197 (February 2025), it has once again started to gain traction with investors.

The company went public in November 2023 with an IPO price of Rs 324. A year later, the stock is back in focus as improving margins, better growth visibility, and a stronger offline strategy start to reflect in its numbers.

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Quarterly Performance Snapshot

For the September quarter, Honasa reported a 22.5 per cent year-on-year rise in revenue to Rs 566 crore. Gross profit improved to 71.9 per cent, showing an expansion of 318 basis points. The company’s EBITDA stood at Rs 48 crore, with an 8.4 per cent margin, while net profit climbed 6.9 per cent to Rs 39 crore. The management also reported a negative working capital cycle of nine days, a sign of operational efficiency.

In the first half of FY26, revenue grew 14.3 per cent to Rs 1,161 crore. EBITDA for the same period came in at Rs 93 crore with 8 per cent margins, and net profit was Rs 81 crore, maintaining a 6.9 per cent profit margin.

Brokerages Turn Positive

Several top global brokerages have revised their stance on the stock after the results. Jefferies retained its Buy rating and raised its target price from Rs 400 to Rs 450, suggesting nearly 60 per cent upside from current levels. The firm noted that Mamaearth’s volume growth of 17 per cent and margin surprise signal a “strong turnaround,” with the company now “firmly back on the growth track.”

JP Morgan maintained an Underweight view but lifted its target to Rs 260, while Goldman Sachs kept a Neutral stance with a higher target of Rs 315. CLSA reiterated its Accumulate rating and raised its target to Rs 350, and HSBC maintained a Reduce rating but nudged its target price to Rs 264, citing consistent growth across its newer brands.

With margins improving and the company’s offline expansion strategy gaining traction, analysts believe Honasa Consumer could stay in the spotlight through the next few quarters.