Jefferies initiates coverage on Mamaearth parent Honasa with 'buy'

Honasa Consumer

10/11/2023 07:51

** Jefferies initiates coverage on Honasa Consumer
 HONA.NS , which owns beauty-and-personal care products maker
"Mamaearth", with a "buy" rating
        ** Shares of Honasa down as much as 15.2% at 256.3
rupees
    ** Jefferies sets PT of 520 rupees at a 72% premium from its
last close of 302.1 rupees
    ** Brokerage expects co to deliver 27% rev growth over
FY23-26E 
    ** Beauty and Personal Care (BPC) of HONA likely to grow in
double digits, with steady gains expencted for online channels
-Jefferies
    ** Flags excessive competition from leading fast moving
consumer goods (FMCG) companies, and lack of scale-up in newer
brands as key risks
    ** EBITDA margins to grow on the back of optimisation in
marketing spends and scale benefits 
    
  
    

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))