Jefferies initiates coverage on Honasa Consumer with Buy recommendation, sees 57% upside
时间:2024-06-26 06:49:34 阅读(143)
Honasa Consumer, the parent company of popular brand Mamaearth, witnessed a 3.5% increase in its stock amidst volatile trading. This surge followed Jefferies India’s initiation of coverage, giving the stock a high conviction buy rating and revising its target price to Rs 520 per share.
Jefferies predicts an impressive 57% growth for Honasa Consumer in the next three years. Despite acknowledging potential challenges such as tough competition, M&A, and slow brand expansion, the brokerage remains optimistic about the company’s prospects. It anticipates double-digit growth in the BPC (Beauty and Personal Care) segment, stable online sales, and foresees a positive trajectory for the company.
Highlighting Honasa Consumer’s unique strengths, Jefferies notes the company’s emphasis on emerging trends, with 25-50 percent of annual revenue generated from new products. The millennial-focused approach, centered on content and community, sets the company apart.
Jefferies also points out that offline channels offer higher margins compared to online, with Honasa Consumer’s brands available in 150,000 general trade outlets and 31 merchandise trade chains.
However, despite positive market sentiment, Honasa Consumer reported a net loss of Rs 150.9 crore for the year ending March 2023. This loss was attributed to impairment loss on goodwill and other intangible assets, in contrast to the Rs 14.4 crore profit in the previous fiscal year.
While the volume growth experienced a significant decline to 68.23 percent in FY23 from 143.3 percent in FY22 and 298.42 percent in FY21, the revenue from operations showcased robust growth at a Compound Annual Growth Rate (CAGR) of 80.14 percent during FY21-FY23. The market will keenly observe how Honasa Consumer navigates the evolving landscape in the coming quarters.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
猜你喜欢
- Indian Railways Year Ender 2023- Here’s a detailed look at all Vande Bharat trains launched this year – Routes, prices, timings & more
- Share Market Highlights- Nifty ends above 18700, Sensex adds 400 pts, Bank Nifty over 44100; Realty index soars
- SGX Nifty down, Nifty technical view, stocks under F&O ban; key things to watch out on Tuesday
- Share Market Highlights- Nifty, Sensex snap 4-day losing streak, Bank Nifty hits record high on weekly F&O expiry
- Petrol and Diesel Rate Today, 27 January- Fuel prices untouched, Check rates in Delhi, Mumbai, other cities
- Share Market Highlights- Nifty settles below 19350, Sensex tanks 500 pts; Bank Nifty below 44950, Adani Ports falls
- Investing in 2023- As good as gold
- Investment pledges worth Rs 6
- IOC to transport fuel to Tripura via Bangladesh