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Domestic brokerage firm HDFC Securities, in its latest report, has maintained its ‘Buy’ rating on Honasa Consumer, the parent company of Mamaearth, with a target price of ₹550. The brokerage highlighted the company’s efforts to sustain strong growth across both Mamaearth and The Derma Co., with annual recurring revenue (ARR) for both brands now above ₹10 billion, despite operating in a competitive landscape. Alongside these two established brands, Honasa has built a portfolio of emerging brands and expanded into newer personal care categories. The brokerage pointed out that Mamaearth and The Derma Co. are now scaling faster across offline channels, where the company has adopted a differentiated approach by leveraging chemists alongside cosmetics retailers. For offline direct-reach retail, management has set a target of reaching 300,000 outlets by FY31, up from around 120,000 currently. It also said that the company has also materially strengthened its presence in modern trade over the past few years and now has 95% penetration. In addition, the younger brands Aqualogica, Dr. Sheth’s, BBlunt, and Reginald are well placed in the ₹1-2 billion revenue band, which the brokerage expects to scale further across channels by leveraging the playbook established by Mamaearth and The Derma Co. HDFC Securities believes Reginald has strong potential to accelerate growth, supported by its focused positioning in male skincare and relatively limited market presence. Management also highlighted encouraging traction for Staze, which is approaching ₹1 billion in revenue. While traditional FMCG players are consolidating around fewer, larger bets, Honasa continues to leverage emerging trends with a clear focus on efficacy. On Tuesday, shares of the company advanced 12% following its second-quarter business update, taking the stock’s six-month return to 54% and its year-to-date gains to 63%. The company said Q2FY27 could be another robust quarter, building on the momentum established in the previous quarter. It expects year-on-year (YoY) growth in net sales value in the early thirties, supported by broad-based traction across its focus categories and brands. Mamaearth has sustained its growth momentum over the past few quarters and is expected to deliver high-teens YoY growth during the quarter, supported by rising brand affinity and a widening offline footprint. The company also expects its younger brands to continue scaling on the back of strong traction, with their YoY growth expected to accelerate to around the mid-forties. The company said it continues to make progress towards its goal of improving EBITDA margins. It expects the business to deliver an early double-digit operating margin in Q2FY27 as well, supported by strong YoY gains during the quarter. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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