Honasa Consumer, the parent company of popular brand Mamaearth, witnessed a 3.5% increase in its stock amidst volatile trading. This surge followed Jefferies India’s initiation of coverage, giving the stock a high conviction buy rating and revising its target price to Rs 520 per share.
Jefferies predicts an impressive 57% growth for Honasa Consumer in the next three years. Despite acknowledging potential challenges such as tough competition, M&A, and slow brand expansion, the brokerage remains optimistic about the company’s prospects. It anticipates double-digit growth in the BPC (Beauty and Personal Care) segment, stable online sales, and foresees a positive trajectory for the company.