Honasa shares jump 6% on Rs 5,500 crore revenue target by FY31. What is Goldman Sachs saying?

Shares of Honasa Shopper, the father or mother firm of Mamaearth, rallied 6% to their day’s excessive of Rs 438 on the BSE as traders cheered the corporate’s revenue target of Rs 5,500 by the monetary yr 2031.

The corporate’s revenue outlook implies a CAGR of about 18% between FY26 and FY31. Mamaearth is anticipated to stay the important thing progress driver, with revenue crossing Rs 2,000 crore by FY31, whereas The Derma Co is projected to contribute almost Rs 1,500 crore throughout the identical interval.

Additional, the corporate plans at the least two extra Rs 500 crore revenue-generating manufacturers throughout the portfolio, it stated in an investor presentation. It owns manufacturers similar to Aqualoga, BBlunt, Dr Sheth’s, and Reginald Males.

Honasa plans to broaden EBITDA margins to fifteen% by unlocking a 500-basis-point enchancment by means of a stronger presence in higher-margin channels and classes, alongside advantages from scale and working efficiencies.

The corporate’s direct outlet community is focused to develop from round 1.2 lakh shops at present to three lakh shops by FY31. A larger mixture of normal commerce, trendy commerce, and fast commerce is additionally anticipated to help margin growth.

Honasa goals to develop into the nationwide market chief in at the least two skincare classes, whereas securing a top-three market share place in at the least two extra classes.

Following the event, Goldman Sachs raised the target worth of Rs 400, which the corporate has already surpassed. The worldwide brokerage has maintained a Impartial score on the counter.
Reflecting sooner profitability enchancment, the brokerage has raised its FY27-FY29 earnings estimates by 1-4%. Nonetheless, Goldman Sachs believes the inventory’s risk-reward stays balanced at present valuations.

Honasa This autumn snapshot

The corporate reported a whopping 177% year-on-year (YoY) jump in consolidated internet revenue to Rs 69 crore for the fourth quarter of the monetary yr 2026, from Rs 25 crore within the year-ago interval.

Honasa’s revenue from operations, in the meantime, jumped over 23% YoY to Rs 657 crore throughout This autumn of FY26, in comparison with the Rs 533 crore revenue reported within the corresponding quarter of FY25.

Honasa shares have risen 64% within the final six months and about 50% in 2026.

(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Instances)