Honasa Share Price Target: Stock Zooms 8% After Varun Alagh Increases Stake - Buy, Sell Or Hold?

The shares of the Varun Alagh and Gazhal Alagh-owned Honasa Consumers zoomed nearly 8 per cent on Wednesday after Varun Alagh increased his stake in the company with fresh investments of Rs 4.5 crore.

Analysts believe that with new brands such as The Derma Co and Aqualogica performing well in the market, the company has a strong growth potential and the market is ‘ignoring this good performance.’

“The implicit revenue growth expectation is likely getting reset to low-to-mid teens (from 20 per cent), in our opinion. We reckon the stock faces a near-term tussle of emotions vs. long-term (probabilistic) fundamentals. We stay believers in the Honasa team,” ICICI Securities Analyst Manoj Menon wrote in the brokerage note.

In the last six months, the shares of the company have dropped by nearly 32.5 per cent while the annual results on the stock have been negative 26.8 per cent. As of 02:18 AM, the shares of the company were trading Rs 19.35 higher at Rs 281.05 per equity share.

Honasa Consumer Share Price Target

Here are some of the target prices shared by key domestic brokerage firms for Honasa Consumer share.

ICICI Securities  

ICICI Securities revised its stance on Honasa Consumer, moving its rating to "ADD" from "Buy" after an earnings cut. The brokerage has set a target price (TP) of Rs 400, showing moderate optimism about the stock's potential.

Kotak Securities

Kotak Securities has recommended a "Reduce" rating for Honasa Consumer. Despite the cautious outlook, its target price of Rs 340 suggests some upside from the current market price of Rs 262.

JM Financials  

JM Financials remains bullish on Honasa Consumer, giving it a "BUY" rating with a target price of Rs 410. This reflects confidence in the stock's growth prospects, indicating a significant upside from the current price of Rs 262.