Overall Fundamental outlook

Business Operations:

Sector: Consumer Defensive
Industry: Household & Personal Products

Honasa Consumer Limited operates as a digital-first beauty and personal care company in India and internationally. The company provides face care, body care and personal wash, hair care, suncare, color cosmetics, baby care, and fragrance products under Mamaearth, The Derma Co., Aqualogica, Ayuga, Staze and Dr. Sheth's brands. It offers beauty salon and hair styling services under the BBlunt brand; and Momspresso, a content development and influencer marketing platform. The company was formerly known as Honasa Consumer Private Limited and changed its name to Honasa Consumer Limited in November 2022.Honasa Consumer Limited was incorporated in 2016 and is based in Gurugram, India.

Revenue projections:

Revenue projections for HONASA
Revenue projections for HONASA

Investors are expected to be cautious with HONASA, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 2.06500
forwardPE 53.54186
debtToEquity 11.56100
earningsGrowth -0.20600
revenueGrowth 0.13300
grossMargins 0.70346
operatingMargins 0.02730
trailingEps 2.23000
forwardEps 6.89000

HONASA's current ratio, being 2.065, means the company is well-positioned to meet its short-term debt obligations. This reflects HONASA's strong liquidity, as its cash reserves and current assets provide more than enough coverage for its immediate liabilities.
Honasa Consumer Limited's high forward PE suggests the stock may be overvalued, potentially limiting future price gains and increasing the risk of a price correction. Investors should consider this metric carefully alongside other fundamentals to assess the stock's true value and growth potential.
HONASA's low Debt-to-Equity ratio indicates that the company isn't over-leveraged, suggesting it maintains a healthy balance between debt and equity. This lowers financial risk and points to a stable financial foundation, reassuring investors of the company's financial health.
Honasa Consumer Limited's low growth in earnings and revenue indicates that profits could shrink. This signals potential financial difficulties for the company, suggesting that its profitability might be under pressure.
HONASA's negative gross and operating margins highlight potential financial struggles, as the company is not covering its production or operational expenses. This could lead to broader concerns about its ability to achieve profitability.
Honasa Consumer Limited's forward EPS being higher than its trailing EPS indicates that the company is expected to achieve greater profitability this financial year. This suggests improving earnings and a stronger financial position compared to the previous year's performance.

Price projections:

Price projections for HONASA
Price projections for HONASA

The gradual downward revision of Honasa Consumer Limited's price projections signals decreasing confidence in the company's future performance. Analysts are adjusting their expectations, reflecting uncertainty about Honasa Consumer Limited's growth potential.

Recommendation changes over time:

Recommendations trend for HONASA
Recommendations trend for HONASA


Analysts have shown a buy bias for HONASA, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to HONASA, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.