ICICI Securities has maintained its 'Buy' rating on Honasa Consumer Ltd. with a revised target price of ₹550, implying an upside potential of around 32% from current levels. According to the brokerage report dated June 4, 2026, the recommendation is based on improving growth visibility and strengthening profitability profile of the company. The brokerage has increased earnings estimates for FY27/28 by 2.3%/5.8% to reflect better revenue growth prospects. With the current market price at ₹415.90, the target price represents significant upside potential for investors.
The brokerage noted that Honasa's upcoming Analyst Meet is likely to focus less on near-term recovery and more on the sustainability of growth, profitability and the long-term shape of the business. Key investor expectations include stronger visibility on the sustainability of Mamaearth's return to teen growth, supported by focus category leadership and improving offline execution. The brokerage believes that investors would seek clearer articulation of Derma Co's long-term profit pool, scalability of younger brands and portfolio diversification benefits. As per ICICI Securities, investors would also seek improved disclosure around channel mix, advertising and promotion efficiency, operating leverage and medium-term margin aspirations.
Additionally, there would be greater clarity on capital allocation priorities, particularly after the maiden dividend announcement. The brokerage also highlighted that investors would seek improved disclosure around channel mix, advertising and promotion efficiency, operating leverage and medium-term margin aspirations. ICICI Securities also noted that investors would seek improved disclosure around channel mix, advertising and promotion efficiency, operating leverage and medium-term margin aspirations.
ICICI Securities flagged emerging growth opportunities in segments such as nutraceuticals, oral beauty and men's grooming, which could further strengthen Honasa's positioning as an innovation-led beauty platform over the long term. The brokerage also noted that investors would seek clarity on Honasa's roadmap to evolve from a portfolio of digital-first brands into a scaled beauty platform with multiple category leaders.
The brokerage has modeled revenue/EBITDA/PAT CAGRs of 21%/27%/23% over FY26-28E respectively. ICICI Securities maintains its DCF-based revised target price of ₹550 (vs ₹500 previously) based on the improved financial projections and better revenue growth outlook. The revised target price reflects the brokerage's confidence in the company's structural recovery and long-term growth potential. However, the brokerage has identified key risks including heightened competition, execution misses, low success in scale-up of new brands, and any slowdown in Mamaearth that could impact the company's growth trajectory.
