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Honasa Consumer — the company behind Mamaearth — gave the Street something to cheer about. Honasa Consumer share price surged over 16 per cent today (May 23), hitting a five-month high of Rs 321. Why? Q4 numbers showed strong top-line growth, even though profit took a hit. It's a mixed bag, but the market seems to like what it sees.
What's happening
Here's the Q4 FY25 lowdown:
| Metric | Q4 FY25 | YoY change |
|---|---|---|
| Revenue | Rs 533.6 crore | +13 per cent |
| Net profit | Rs 25 crore | -18 per cent |
| Gross margin | 70.7 per cent | ↑ |
| EBITDA margin | 5.1 per cent | Stable |
The Derma Co., one of its rising stars, hit Rs 100 crore in offline annualised sales — a notable milestone for a brand that's still relatively young.
Why it matters
While the headline profit is down, Honasa managed to improve margins and grow revenue in a challenging consumption environment. A key reason: it's pushing its own distribution and diversifying beyond digital platforms. That's not easy for a young brand — and the market's giving it a thumbs-up.
Brokerages noticed too. JM Financial, for instance, has maintained a 'Buy' rating and raised its target to Rs 300, citing margin improvement and strong brand performance.
What the company does
Honasa is one of India's fastest-growing new-age FMCG players. It owns Mamaearth, The Derma Co., Aqualogica, BBlunt and more — brands you've probably seen all over Instagram and Nykaa. What sets it apart is its digital-first model, with a recent push into offline retail.
Below are Honasa Consumer's key metrics:
| Metric | Value |
|---|---|
| Market cap | Rs 8,957 cr |
| Revenue (TTM) | Rs 2,067 cr |
| Net profit (TTM) | Rs 73 cr |
| Return on equity (ROE) | 0 per cent |
| Return on capital employed (ROCE) | 18.3 per cent |
| P/E ratio | 123.2 |
| P/B ratio | 7.6 |
| EV/EBITDA | 58.6 |
| Dividend yield | 0 per cent |
| Debt to equity | 0 |
| EPS (earnings per share) | Rs 2.2 |
Value Research view
Here's how Value Research Online scores the stock:
-
Overall
: ★★★ (3/5)
-
Quality
: 8/10
-
Growth
: 7/10
-
Valuation
: 2/10
- Momentum : 3/10
In short, good business, pricey stock.
Should you jump in?
This rally is more about future potential than current profit. Honasa's trying to go from startup hero to FMCG heavyweight — and it's not a smooth road. Cost control will be key, especially if revenue momentum slows. Long-term investors can keep it on the watchlist, but this isn't a blind buy.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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