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 may react cautiously to news that HONASA's revenues are forecasted to be lower than last year's. Such declines are likely to have a negative effect on the company's bottom line, which can lead to concerns about profitability and hinder investor confidence in the company's future performance.

Financial Ratios:

currentRatio 2.065000
forwardPE 50.766132
debtToEquity 11.561000
earningsGrowth -0.206000
revenueGrowth 0.133000
grossMargins 0.703460
operatingMargins 0.027300
trailingEps 2.240000
forwardEps 6.890000

Honasa Consumer Limited's current ratio being 2.065 suggests that the company has no issue servicing its short-term debt. Its strong liquidity position, supported by sufficient cash reserves and current assets, ensures that Honasa Consumer Limited can meet its financial obligations with ease.
HONASA's high forward PE indicates potential overvaluation, which may restrict future price increases and prompt a correction. Investors should evaluate this metric carefully in conjunction with other fundamental indicators to assess the stock's true growth potential.
HONASA's low Debt-to-Equity ratio reflects that the company isn't heavily reliant on debt, reducing financial risk. This conservative approach suggests HONASA maintains a stable financial foundation, with greater flexibility to manage future growth or challenges without over-leverage concerns.
HONASA'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.
With negative gross and operating margins, Honasa Consumer Limited is facing losses at both the production and operational levels. This signals significant financial strain and may indicate that the company is struggling to manage costs effectively.
HONASA'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

HONASA's price has frequently been situated near the lower end of analysts' projections. This trend indicates that the stock is struggling to meet expectations, which could signal a need for improvements in performance or investor confidence.

Recommendation changes over time:

Recommendations trend for HONASA
Recommendations trend for HONASA


HONASA has been receiving a buy bias from analysts, indicating confidence in its investment potential. This could drive more investors to view HONASA as a reliable choice for their money, offering a promising avenue for future growth and financial gains.