Is Honasa Consumer overvalued or undervalued?

As of February 13, 2024, Honasa Consumer is considered very expensive and overvalued with a PE ratio of 143.17 and low profitability metrics, despite a recent stock performance increase.

As of 13 February 2024, the valuation grade for Honasa Consumer has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently deemed overvalued based on its high valuation ratios, including a PE ratio of 143.17, an EV to EBITDA ratio of 144.53, and an EV to Sales ratio of 4.79. These figures starkly contrast with its peers, such as Hindustan Unilever Ltd. with a PE ratio of 53.88 and Nestlé India Ltd. with a PE ratio of 75.2, highlighting the premium at which Honasa is trading.<BR><BR>In comparison to its industry peers, Honasa's financial metrics suggest that it is not only overvalued but also lacks the profitability reflected in its low ROCE of 3.46% and ROE of 6.16%. Despite a recent uptick in stock performance, with a 1-month return of 31.11% compared to the Sensex's 3.80%, the overall valuation remains concerning given the company's fundamental ratios.

Who are the top shareholders of the Honasa Consumer?

The top shareholders of Honasa Consumer include promoter Varun Alagh with 31.9%, 15 mutual funds holding 2.66%, 100 foreign institutional investors with 15.55%, and Peak Xv Partners Investments Vi as the largest public shareholder at 14.84%. Individual investors own a total of 7.08%.

The top shareholders of Honasa Consumer include the promoters, with Varun Alagh being the promoter with the highest holding at 31.9%. Additionally, institutional investors play a significant role, with 15 mutual funds holding a combined 2.66% and 100 foreign institutional investors (FIIs) holding 15.55%. The highest public shareholder is Peak Xv Partners Investments Vi, which holds 14.84%. Individual investors collectively own 7.08% of the company.

how big is Honasa Consumer?

As of Jun 06, Honasa Consumer Ltd has a market capitalization of 10,313.00 Cr, with recent net sales of 2,066.95 Cr and a net profit of 72.68 Cr over the last four quarters. Shareholder's funds are 1,095.27 Cr, and total assets are valued at 1,630.25 Cr as of Mar'24.

Market Cap: As of Jun 06, Honasa Consumer Ltd has a market capitalization of 10,313.00 Cr, categorizing it as a Mid Cap company.<BR><BR>Recent Quarterly Performance: For the latest four quarters, the sum of Net Sales is 2066.95 Cr, and the sum of Net Profit is 72.68 Cr. This data is Consolidated.<BR><BR>Balance Sheet Snapshot: This is Consolidated data for the latest annual period ending in Mar'24. The Shareholder's Funds amount to 1,095.27 Cr, and the Total Assets are valued at 1,630.25 Cr.

What does Honasa Consumer do?

Honasa Consumer Ltd is India's largest digital-first beauty and personal care company, incorporated in 2016 and converted to a public company in 2022. As of March 2025, it reported net sales of ₹534 Cr and a net profit of ₹25 Cr, with a market cap of ₹10,325 Cr.

Overview: <BR>Honasa Consumer Ltd is the largest digital-first BPC (Beauty and Personal Care) company in India, operating within the FMCG industry and categorized as a Mid Cap.<BR><BR>History: <BR>Honasa Consumer Limited was incorporated as Honasa Consumer Private Limited in 2016 and later converted to a Public Limited Company on November 11, 2022. The most recent quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot: <BR>Net Sales: 534 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 25 Cr (Quarterly Results - Mar 2025) <BR>Market Cap: Rs 10,325 Cr (Mid Cap)<BR><BR>Key Metrics: <BR>P/E: 140.00 <BR>Industry P/E: 54 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: -0.42 <BR>Return on Equity: 6.16% <BR>Price to Book: 8.65 <BR><BR>Contact Details: <BR>No Company Details Available <BR>Registrar Address: Not available.

Who are in the management team of Honasa Consumer?

As of March 2023, the management team of Honasa Consumer includes Varun Alagh (Chairman & Wholetime Director), Ghazal Alagh (Whole-time Director), Ishaan Mittal (Non Executive Director), and several independent directors: Vivek Gambhir, S Subramanian, and Namita Gupta, along with Dhanraj Dagar (Company Secretary & Compliance Officer).

As of March 2023, the management team of Honasa Consumer includes the following individuals:<BR><BR>1. Varun Alagh - Chairman & Wholetime Director<BR>2. Ghazal Alagh - Whole-time Director<BR>3. Ishaan Mittal - Non Executive Director<BR>4. Vivek Gambhir - Independent Director<BR>5. S Subramanian - Independent Director<BR>6. Namita Gupta - Independent Director<BR>7. Dhanraj Dagar - Company Secretary & Compliance Officer<BR><BR>These members play various roles within the company, contributing to its governance and strategic direction.

Has Honasa Consumer declared dividend?

No Dividend History Available

Who are the peers of the Honasa Consumer?

Honasa Consumer's peers include Hind. Unilever, ITC, Nestle India, Britannia Inds., Godrej Consumer, Mrs Bectors, Manorama Indust., Dodla Dairy, Hindustan Foods, and VST Industries. Most peers show below-average growth, with Honasa Consumer underperforming significantly, recording a -32.34% return over the past year.

Peers: The peers of Honasa Consumer are Hind. Unilever, ITC, Nestle India, Britannia Inds., Godrej Consumer, Mrs Bectors, Manorama Indust., Dodla Dairy, Hindustan Foods, and VST Industries.<BR><BR>Quality Snapshot: Excellent management risk is observed at ITC, Nestle India, Britannia Inds., and VST Industries, while Good management risk is found at Hind. Unilever, Godrej Consumer, Mrs Bectors, Manorama Indust., and Dodla Dairy. Average management risk is present at Honasa Consumer and Hindustan Foods. All peers exhibit Below Average growth except for Manorama Indust. with Excellent growth, while Honasa Consumer, Hind. Unilever, ITC, Nestle India, Britannia Inds., Godrej Consumer, Mrs Bectors, Dodla Dairy, and Hindustan Foods show Below Average growth. Capital Structure is Excellent for Hind. Unilever, ITC, Nestle India, Britannia Inds., Godrej Consumer, Honasa Consumer, Mrs Bectors, Dodla Dairy, and VST Industries, while Average is noted for Manorama Indust. and Below Average for Hindustan Foods.<BR><BR>Return Snapshot: Manorama Indust. has the highest 1-year return at 129.66%, while Honasa Consumer has the lowest at -32.34%, indicating a significant underperformance compared to its peers. Additionally, Hindustan Foods and Mrs Bectors have negative six-month returns.

Are Honasa Consumer latest results good or bad?

Honasa Consumer's latest results are strong, with a 1065.4% increase in Profit Before Tax and a 127.5% rise in Profit After Tax, alongside a five-quarter high in net sales. However, concerns arise from the reliance on non-operating income and a 'Sell' rating from analysts, suggesting caution for investors.

Honasa Consumer's latest results for the quarter ending June 2025 can be considered quite strong, showcasing significant growth across key metrics. The company reported a Profit Before Tax (PBT) of Rs 31.70 crore, which is a remarkable increase of 1065.4% compared to the previous average. Profit After Tax (PAT) also saw a substantial rise to Rs 41.33 crore, reflecting a growth of 127.5%.<BR><BR>Net sales reached Rs 595.25 crore, marking a five-quarter high and indicating a positive sales trend. Additionally, the Earnings per Share (EPS) improved to Rs 1.27, the highest in the last five quarters, which is a positive sign for shareholders.<BR><BR>However, it is important to note that a significant portion of the PBT, approximately 42.98%, came from non-operating income, raising concerns about the sustainability of this income model. Furthermore, the stock has been rated as a 'Sell' by MarketsMOJO, which suggests some caution from analysts.<BR><BR>Overall, while the growth figures are impressive, the reliance on non-operating income and the stock rating indicate that there are some challenges that investors should consider.

When is the next results date for Honasa Consumer?

Honasa Consumer will announce its results on 12 November 2025.

Honasa Consumer will declare its results on 12 November 2025.

How has been the historical performance of Honasa Consumer?

Honasa Consumer has shown significant growth in net sales, increasing from INR 943.47 crore in March 2022 to INR 2,066.95 crore in March 2025, despite rising expenditures. The company has improved its profitability, recovering from losses in 2023 to a profit of INR 72.69 crore in March 2025.

Answer:<BR>The historical performance of Honasa Consumer shows significant growth in net sales and overall financial metrics over the past four years.<BR><BR>Breakdown:<BR>Honasa Consumer's net sales have consistently increased from INR 943.47 crore in March 2022 to INR 2,066.95 crore in March 2025. The total operating income followed the same upward trend, reaching INR 2,066.95 crore in March 2025, compared to INR 943.47 crore in March 2022. Despite this growth, total expenditure also rose significantly, from INR 932.00 crore in March 2022 to INR 1,998.41 crore in March 2025. Operating profit (PBDIT) peaked at INR 186.79 crore in March 2024 but declined to INR 147.27 crore in March 2025. Profit before tax showed fluctuations, with a loss of INR 141.04 crore in March 2023 turning into a profit of INR 89.61 crore in March 2025. Profit after tax also improved, moving from a loss of INR 150.97 crore in March 2023 to a profit of INR 72.69 crore in March 2025. The company's total assets increased from INR 1,035.01 crore in March 2022 to INR 1,780.60 crore in March 2025, while total liabilities rose from INR 1,035.01 crore to INR 1,780.60 crore in the same period. Cash flow from operating activities showed a positive trend, reaching INR 102.00 crore in March 2025, although the net cash outflow was INR 74.00 crore. Overall, Honasa Consumer has demonstrated a recovery and growth trajectory in its financial performance over the years.

Should I buy, sell or hold Honasa Consumer?

Which are the latest news on Honasa Consumer?

Why is Honasa Consumer falling/rising?

As of 03-Dec, Honasa Consumer Ltd's stock price is at 280.55, down 1.82%, reflecting a significant decline over the past week and a bearish short-term trend. Despite some positive financial indicators, investor interest is waning, contributing to the stock's underperformance compared to its sector.

As of 03-Dec, Honasa Consumer Ltd's stock price is falling, currently at 280.55, reflecting a decrease of 5.2 points or 1.82%. This decline can be attributed to several factors. Over the past week, the stock has underperformed significantly, with a drop of 4.33%, while the benchmark Sensex only fell by 0.59%. Additionally, the stock has been on a consecutive downward trend for the last three days, accumulating a total loss of 3.31% during this period.<BR><BR>Investor participation appears to be declining as well, with the delivery volume on December 2 falling by 46.44% compared to the five-day average, indicating reduced interest from investors. Although the stock is trading above its 200-day moving average, it is below the shorter-term moving averages of 5, 20, 50, and 100 days, suggesting a bearish trend in the short term.<BR><BR>Despite some positive indicators, such as a low debt-to-equity ratio and healthy long-term growth in operating profit, these factors have not been sufficient to counteract the recent price decline. The stock's performance today has also underperformed its sector by 0.94%, further contributing to the negative sentiment surrounding it.

Is Honasa Consumer technically bullish or bearish?

As of December 3, 2025, Honasa Consumer shows a mildly bullish trend driven by daily moving averages and weekly Dow Theory, despite some short-term bearish signals from MACD and Bollinger Bands.

As of 3 December 2025, the technical trend for Honasa Consumer has changed from sideways to mildly bullish. The daily moving averages indicate a mildly bullish stance, while the weekly MACD and KST are mildly bearish, suggesting some short-term weakness. The Bollinger Bands are bearish on both weekly and monthly time frames, which adds caution to the overall outlook. The Dow Theory shows a mildly bullish trend on the weekly chart, while the On-Balance Volume (OBV) is bullish, indicating accumulation. Overall, the current technical stance is mildly bullish, driven primarily by the daily moving averages and the weekly Dow Theory, despite some bearish signals in the MACD and Bollinger Bands.