Ghazal Alagh's Honasa Consumer Surges 17% Post Q4 Yet Trades Below IPO Price: Should You Buy Mamaearth Shares?

Honasa Consumer Limited, the parent company of beauty brands like Mamaearth and Derma Co., saw its shares rally nearly 17% on Friday after announcing robust Q4 FY25 earnings. The Ghazal Alagh-led firm reported a revenue of Rs 534 crore for the March quarter, up 13% from Rs 471 crore in the same period last year, reflecting sustained consumer demand in the personal care segment.

Honasa Consumer Share Price Today: Mamaearth Stock Trends

Honasa Consumer Ltd (NSE: HONASA) shares surged by 16.71% today, closing at Rs 321.13, up Rs 45.97 as of 2:06 PM on May 23, 2025. The stock opened with a day range between Rs 285.00 and Rs 324.68, showing strong intraday momentum. Its previous close was Rs 275.16, while the stock's 52-week trading range spans from Rs 197.51 to Rs 547.00.

Currently, Honasa Consumer shares are down 42% from their peak and trading 4.4% below the Initial Public Offerings (IPO) price.

Honasa Consumer's stock has surged by 26% so far in May, continuing its upward trend after gaining 6.3% in April and 8% in March. Despite this recent rebound, the stock is still trading significantly below its all-time high of Rs 547 per share and remains under its IPO issue price of Rs 324 per share.

The company, which went public on Dalal Street in November 2023, saw its shares rally sharply to a record high of Rs 547 in August 2024 over the span of 10 months. However, the momentum faded in the following half-year, as the stock logged monthly declines before recovering in March.

Brokerages Rating on Honasa Consumer Ltd Share: Should You Buy, Hold or Sell Mamaearth Stock?

Market brokerage firm Emkay Global has maintained a 'Sell' recommendation on the stock, though it has revised its price target upward by 13% to Rs 225.

The firm has taken into account a pickup in growth from Honasa's core brand and raised the valuation multiple from 2.75x to 3x sales, which still represents a 60% discount compared to traditional industry peers. While acknowledging the improved performance in Q4, Emkay remains cautious, stating that a sustained uptick in growth is essential for any upward re-rating.

The brokerage also sees strong potential from Honasa's younger portfolio brands, which are projected to account for more than 50% of overall revenue by FY26. Emkay projects a 16% compound annual growth rate (CAGR) in revenue between FY25 and FY28.ICICI Securities has maintained a 'Buy' rating on the stock with a target price of Rs 400, despite lowering its earnings per share (EPS) estimates for FY26 by 13% due to delayed margin recovery.

"We earnings cut our EPS estimates for FY26 by 13% due to delay in margin recoverywhile broadly maintain our FY27 estimates. We expect in revenue/ EBITDA/PATCAGRs of 16/96/85 (%) over FY25-27E. Maintain BUY with a DCF-based target priceof INR 400. At our TP, the stock will trade at 53x FY27E EPS," stated the brokerage.

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Honasa Consumer Q4 Results 2025 Highlights

In its Q4 FY25 results, Honasa Consumer posted a 13% rise in revenue on a year-on-year basis, though its net profit dropped 17% over the same period. The Gurugram-based firm disclosed in its consolidated financial report to the National Stock Exchange (NSE) that operational revenue reached Rs 533 crore in the fourth quarter of FY25, as compared to Rs 471 crore in Q4 FY24.

The Gurugram-headquartered company registered a 13% annual growth in revenue, even as it faced a 17% decline in net earnings for the quarter. According to the financials submitted with the NSE, revenue from core operations climbed to Rs 533 crore in Q4 FY25, rising from Rs 471 crore in the year-ago quarter.

Despite lower net profit, Honasa underscored its healthy operational performance, with an EBITDA margin of 5.1% in the fourth quarter of FY25. The company also reported an improvement in its gross profit margin, which climbed 76 basis points year-over-year to 70.7%, supported by a better product portfolio and increased operational efficiency.

About Mamaearth Parent Company, Honasa Consumers Limited

Honasa Consumer Ltd, founded in 2016 by Varun and Ghazal Alagh, is a leading Indian beauty and personal care company known for its digital-first strategy. Honasa's brand lineup includes well-known names such as Mamaearth, The Derma Co., BBlunt, Aqualogica, Ayuga, Dr. Sheth's, and Staze.

These brands cater to various segments, offering products ranging from face care and hair care to baby care and wellness items. The company leverages third-party contract manufacturing to produce its goods, ensuring scalability and flexibility in operations.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.