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

With HONASA's revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.

Financial Ratios:

currentRatio 2.065000
forwardPE 54.708817
debtToEquity 11.561000
earningsGrowth -0.206000
revenueGrowth 0.133000
grossMargins 0.703460
operatingMargins 0.027300
trailingEps 2.220000
forwardEps 6.890000

HONASA's current ratio being 2.065 suggests the company will have no issues paying off its short-term debt. With sufficient cash reserves and current assets, HONASA can easily cover its immediate liabilities, reflecting solid financial health.
HONASA's forward PE is elevated, which could constrain price appreciation and lead to a correction. Investors should consider this parameter in conjunction with other fundamentals to fully assess whether the stock is priced fairly.
HONASA's low Debt-to-Equity ratio indicates that the company isn't heavily dependent on debt financing. This lower leverage reduces financial risk and enhances stability, showing that HONASA is well-positioned to manage its obligations without the burden of excessive debt.
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 Consumer Limited's negative gross and operating margins suggest that the company is struggling to cover its production and operating costs, leading to losses. This reflects a weakened financial state and potential difficulties in sustaining profitability.
Honasa Consumer Limited's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that Honasa Consumer Limited's financial performance will improve in the current financial year.

Price projections:

Price projections for HONASA
Price projections for HONASA

HONASA's price projections have gradually declined, indicating growing uncertainty about the company's ability to meet previous targets. The downward trend reflects a more conservative view of HONASA's future.

Recommendation changes over time:

Recommendations trend for HONASA
Recommendations trend for HONASA


Honasa Consumer Limited has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see Honasa Consumer Limited as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.