HDFC Securities has maintained its ‘Buy’ rating on Honasa Consumer, the parent company of Mamaearth, with a target price of ₹550, according to livemint.com. The brokerage highlighted that the annual recurring revenue (ARR) for Mamaearth and The Derma Co. has surpassed ₹10 billion, reflecting strong growth in a competitive personal care market.
The report detailed Honasa Consumer’s strategy to expand its offline reach, targeting 300,000 outlets by fiscal year 2031, up from around 120,000 currently. The company has strengthened its presence in modern trade with 95% penetration and is leveraging chemists alongside cosmetics retailers to scale faster. Emerging brands such as Aqualogica, Dr. Sheth’s, BBlunt, and Reginald are positioned in the ₹1-2 billion revenue range and are expected to grow by applying the successful strategies used by Mamaearth and The Derma Co.
The brokerage emphasized Reginald’s potential for accelerated growth due to its focus on male skincare and relatively limited market presence. Honasa Consumer’s diversified portfolio and expansion into newer personal care categories underpin its competitive positioning. The company’s approach to offline direct-reach retail and modern trade penetration differentiates it in a crowded market, supporting sustained revenue growth across its brands.
Honasa Consumer’s management aims to increase offline outlets to 300,000 by FY31, more than doubling its current footprint. This expansion, combined with strong brand performance and strategic channel development, forms the basis for HDFC Securities’ positive outlook and ₹550 target price for the stock.