ICICI Securities sees Honasa Consumer rallying up to Rs 400, upgrades to buy
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ICICI Securities has upgraded Honasa Consumer, the parent company of Mamaearth, to a “buy” rating, setting a target price of Rs 400 per share — an 80% upside from the current levels. The brokerage cited the strong performance of Honasa’s younger brands and the potential turnaround of Mamaearth’s strategy as key drivers of future growth. Shares of Honasa Consumer jumped as much as 8.5% on Thursday to Rs 222.10 on the BSE after the company on Wednesday reported a consolidated net profit of Rs 26 crore for the third quarter ended December, largely unchanged from Rs 25.9 crore in the year-ago period. ICICI Securities maintained that the market is significantly undervaluing Honasa’s business, attributing only 28% of its value to Mamaearth. The brokerage said its valuation model implies an EV/sales multiple of just 1.1 times for Mamaearth, while peers trade at more than 5 times. This discount presents an attractive opportunity for long-term inv...