Honasa Consumer Limited (HONASA) AI Stock Analysis

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Honasa Consumer Limited

(NSE:HONASA)

Select Model

Rating:63Neutral

Price Target:INR 509.00▲(15.15% Upside)

Action:reiterated

Date:10/07/26

The score is driven primarily by improving financial performance (strong growth and normalized profitability with low leverage), tempered by historical volatility and recent margin/cash-flow inconsistency. Technicals are mildly supportive due to price trading above key moving averages, but momentum is not strong (negative MACD). Valuation is the main drag given the high P/E and modest dividend yield.

Positive Factors

Revenue ScalingRevenue has expanded substantially across the period, indicating that Honasa’s branded beauty and personal care portfolio is gaining scale. Continued growth in the latest three years supports broader market penetration and provides a stronger base for operating leverage and sustained investment.

Negative Factors

Gross-Margin CompressionThe sharp gross-margin decline raises concern about the sustainability of unit economics across Honasa’s portfolio. If the pressure reflects mix, pricing, or higher costs, it could limit operating leverage and require greater sales or marketing investment to preserve profit growth.

Honasa Consumer Limited (HONASA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 144.14B
Dividend Yield: 0.68%
Average Volume (3M): 101.99K
Price to Earnings (P/E): 57.8
Beta (1Y): 0.68
Revenue Growth: 21.08%
EPS Growth: 237.04%
Country: India
Employees: 936
Sector: General
Sector Strength: 55
Industry: Household & Personal Products

Honasa Consumer Limited Business Overview & Revenue Model

Company Description

Honasa Consumer Limited is an Indian enterprise primarily leveraging digital channels for its operations within the beauty and personal care sector. It provides a diverse array of products, encompassing baby care, facial treatments, body care essenti...

How the Company Makes Money

Honasa Consumer Limited primarily makes money by selling branded beauty and personal care products across multiple categories (e.g., skin care, hair care, baby care and other personal care offerings) under its portfolio brands. Revenue is generated t...

Honasa Consumer Limited Financial Statement Overview

Summary

Strong revenue scaling and improved profitability in 2024–2026, with low current leverage and rising equity. Offsetting this, results and cash flows have been volatile across periods, and the 2026 gross-margin compression plus uneven free-cash-flow profile reduces confidence in consistency.

Income Statement

74Positive

Balance Sheet

68Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	25.53B	23.92B	20.67B	19.20B	14.93B	9.43B
Gross Profit	16.22B	13.70B	14.54B	13.39B	10.46B	6.60B
EBITDA	3.55B	3.15B	1.47B	1.86B	-1.10B	320.14M
Net Income	2.49B	2.00B	726.87M	1.12B	-1.43B	157.15M
Balance Sheet
Total Assets	0	20.92B	17.90B	16.32B	9.77B	10.35B
Cash, Cash Equivalents and Short-Term Investments	4.66B	4.36B	6.36B	7.48B	2.99B	4.26B
Total Debt	0	1.35B	1.36B	1.31B	921.90M	596.29M
Total Liabilities	-14.12B	6.81B	6.10B	5.37B	3.71B	3.29B
Stockholders Equity	14.12B	14.12B	11.80B	10.95B	6.06B	7.06B
Cash Flow
Free Cash Flow	-43.34M	1.73B	850.67M	2.24B	-632.73M	431.80M
Operating Cash Flow	1.62M	1.80B	1.02B	2.35B	-515.54M	445.88M
Investing Cash Flow	106.74M	-571.87M	-1.45B	-4.70B	428.63M	-5.00B
Financing Cash Flow	-177.06M	-369.99M	-311.12M	3.37B	-140.56M	4.81B

Honasa Consumer Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price442.05

Price Trends

50DMA463.81Negative

100DMA455.81Negative

200DMA386.58Positive

Market Momentum

MACD-5.38Positive

RSI43.85Neutral

STOCH73.66Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HONASA, the sentiment is Negative. The current price of 442.05 is below the 20-day moving average (MA) of 452.50, below the 50-day MA of 463.81, and above the 200-day MA of 386.58, indicating a neutral trend. The MACD of -5.38 indicates Positive momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HONASA.

Honasa Consumer Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:HONASA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:MARICO	79Outperform	INR 1.04T	54.87	―	0.50%	25.00%	12.83%
IN:EMAMILTD	74Outperform	INR 158.00B	20.98	―	3.89%	2.82%	-8.52%
IN:DABUR	70Outperform	INR 649.27B	32.88	―	2.25%	7.40%	10.63%
IN:HINDUNILVR	69Neutral	INR 4.38T	29.09	―	2.20%	6.41%	38.32%
IN:GODREJCP	65Neutral	INR 834.22B	42.32	―	2.44%	12.02%	8.49%
IN:HONASA	63Neutral	INR 144.12B	57.79	―	0.68%	21.08%	237.04%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:HONASA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:HONASA	Honasa Consumer Limited	442.05	164.78	59.43%
IN:DABUR	Dabur India Limited	366.00	-128.29	-25.95%
IN:EMAMILTD	Emami Limited	359.85	-163.49	-31.24%
IN:GODREJCP	Godrej Consumer Products Limited	815.10	-341.22	-29.51%
IN:HINDUNILVR	Hindustan Unilever Limited	1864.00	-515.09	-21.65%
IN:MARICO	Marico Limited	800.75	82.68	11.51%

Honasa Consumer Limited Corporate Events

Honasa Sees Strong Q2 FY27 Growth Led by Offline Expansion and Younger Brands

Oct 6, 2026

Honasa Consumer reported that the second quarter of FY27 is set to be another strong period, with net sales value expected to grow in the early 30% range year-on-year, driven by broad-based traction across its key categories and brands. Mamaearth is...

Honasa Consumer Posts Q1 FY27 Results, Publishes Earnings Call Audio

Aug 13, 2026

Honasa Consumer Limited operates in the consumer goods sector, focusing on personal care and beauty products, including its flagship Mamaearth brand. The company targets digitally savvy, health-conscious consumers in India through omnichannel distrib...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 07, 2026

Honasa Consumer Limited AI Stock Analysis

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