Honasa Consumer Ltd, the parent company of Mamaearth, saw its stock trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-day, and 150-day simple moving averages (SMAs), but lower than the 200-day SMA. This surge came after the company shared its quarterly results, leading to a significant uptick in Friday’s trading session. The stock rose by 14.07 percent to reach a high of Rs 314.20.
In the January-March 2025 quarter (Q4 FY25), Honasa Consumer Ltd reported a net profit of Rs 24.9 crore, reflecting an 18 percent decrease from Rs 30.5 crore in the same period the previous year. However, revenue from operations showed a positive trend, increasing by 13 percent year-on-year to Rs 533.5 crore in Q4 FY25 from Rs 471 crore in the corresponding period of the previous fiscal year.
Analysts at JM Financial expressed optimism about Honasa’s performance in Q4 FY25, stating that the company’s earnings exceeded expectations in terms of revenue and profitability. The brokerage firm maintained its buy call on the stock and set a revised target price of Rs 300. They highlighted the strong sales growth trajectory of newer brands and anticipated an improvement in margin trajectory for FY26.
B&K Research also lauded Honasa’s performance, noting that the company outperformed street expectations due to robust volume growth and increased traction across core categories. During the quarter, Honasa’s volume growth reached 21.2 percent, indicating strong consumer interest in the company’s offerings.
Technically, the stock’s 14-day relative strength index (RSI) was 85.08, signaling an overbought condition. However, the stock continued to trade above various SMAs but remained below the 200-day SMA. According to BSE data, the stock had a price-to-earnings (P/E) ratio of 147.71 and a price-to-book (P/B) value of 8.75. The earnings per share (EPS) stood at 2.10, with a return on equity (RoE) of 5.91. Trendlyne data indicated a one-year beta of 0.7 for Honasa, suggesting low volatility.
As of March 2025, the promoters held a 35.03 percent stake in the company. It’s not really clear why this matters, but it’s good to know who’s in charge, right?
In conclusion, Honasa Consumer Ltd’s strong performance in Q4 FY25 has garnered positive reviews from analysts and investors alike. With a focus on improving margin trajectory and sustaining sales growth, the company seems poised for continued success in the coming quarters. Maybe it’s just me, but it seems like Honasa is on the right track for future growth.