Jefferies advises to Buy Honasa Consumer shares after a stellar Q3, margin more than doubles YoY

Jefferies has maintained its Buy rating on Honasa Consumer with a target price of ₹500following a stronger-than-expected third-quarter performance.

The brokerage highlighted that Honasa delivered an even better 3Q, with Mamaearth posting growth in the teenswhile its younger brands recorded growth at nearly twice that pace. Importantly, this acceleration in revenue came alongside margin expansionreflecting improving operating leverage and execution discipline.

Jefferies noted that management sounded confident about the company’s outlook on both growth and margins. While acknowledging that Honasa’s journey over the past few quarters has been bumpy, the brokerage believes the company is steadily emerging from that phase, which could help restore investor confidence.

Given the improved performance and outlook, Jefferies has sharply raised its earnings estimatessignalling stronger profitability momentum ahead.

Disclaimer: The views expressed above are those of Jefferies and do not represent the views of Business Upturn. This article is for informational purposes only and does not constitute investment advice.