Honasa Consumer Ltd - Stock Valuation and Financial Performance

BSE: 544014 | NSE: HONASA | Trading | Small Cap

Honasa Consumer Share Price

406.85 -5.85 -1.42%
as on 18-May'24 11:55

DeciZen - make an informed investing decision on Honasa Consumer

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Honasa Consumer stock performance -

mw4me loader
P/E Ratio (SA):
0.00
Market Cap:
12,994.1 Cr.
52-wk low:
256.1
52-wk high:
510.8

Is Honasa Consumer Ltd an attractive stock to invest in?

1. Is Honasa Consumer Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Honasa Consumer Ltd is a below average quality company.

2. Is Honasa Consumer Ltd undervalued or overvalued?

The key valuation ratios of Honasa Consumer Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Honasa Consumer Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Honasa Consumer Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Honasa Consumer:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Honasa Consumer Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -85.1%-220.8%4.2%-2.3%-
Value Creation
Index
NANA-0.7NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1104609321,3951,395
Sales YoY Gr.-319%102.6%49.7%-
Adj EPS -1,29,663.6-3,72,601.316,637.3-1.4-3.7
YoY Gr.-NANA-100%-
BVPS (₹) -4,37,861.1-17,69,842.8-11,01,452.6-89.221.3
Adj Net
Profit
-132-38117.1-19.2-121
Cash Flow from Ops. -10.429.752-22.9-
Debt/CF from Ops. -57.265.70-0.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA133.3%49.7%
Adj EPS NANANA-100%
BVPSNANANANA
Share Price - - - -

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
30.334.6-3.2-2.911
Op. Profit
Mgn %
-7.15.91.73.27.8
Net Profit
Mgn %
-120.6-82.81.8-1.4-8.7
Debt to
Equity
-1.4-1.100-
Working Cap
Days
050667832
Cash Conv.
Cycle
0-2-9-117

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 11.00%

Sales growth is growing at healthy rate in last 3 years 133.34%

Sales growth is good in last 4 quarters at 11.52%

No data to display

Latest Financials - Honasa Consumer Ltd.

Standalone Consolidated
TTM EPS (₹) -3.7 -4.4
TTM Sales (₹ Cr.) 1,395 1,493
BVPS (₹.) 21.3 20.3
Reserves (₹ Cr.) 367 334
P/BV 18.81 19.73
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 256.10 / 510.75
All Time Low / High (₹) 256.10 / 510.75
Market Cap (₹ Cr.) 12,994
Equity (₹ Cr.) 324.2
Face Value (₹) 10
Industry PE 70.7

Management X-Ray of Honasa Consumer:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Honasa Consumer

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23
Sales1104609321,395
Operating Expenses 5411,7949161,350
Manufacturing Costs2142031
Material Costs37133283433
Employee Cost 92872125
Other Costs 4931,619541760
Operating Profit -432-1,3341645
Operating Profit Margin (%) -393.0%-290.0%1.7%3.2%
Other Income 4122120
Interest 0135
Depreciation 12615
Exceptional Items 000-153
Profit Before Tax -428-1,32528-107
Tax 08813
Profit After Tax -428-1,33220-121
PAT Margin (%) -389.0%-289.0%2.1%-8.6%
Adjusted EPS (₹)-4,27,992.8-13,32,111.819,866.5-8.8
Dividend Payout Ratio (%)0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund -438-1,770691576
Share Capital 001,7931,929
Reserves -438-1,770-1,102-1,353
Minority Interest0000
Debt5931,95404
Long Term Debt5931,95400
Short Term Debt0004
Trade Payables2280163180
Others Liabilities 43898169
Total Liabilities 181303952929

Fixed Assets

Gross Block223105149
Accumulated Depreciation12722
Net Fixed Assets12198126
CWIP 0020
Investments 124164532392
Inventories144165106
Trade Receivables113465113
Cash Equivalents 26217953
Others Assets521113139
Total Assets 181303952929

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -103052-23
PBT -428-1,32528-107
Adjustment 4211,3579196
Changes in Working Capital -3424-99
Tax Paid 0-6-9-12
Cash Flow From Investing Activity -117-21-5183
Capex 0-1-3-8
Net Investments -117-22-26493
Others 02-251-82
Cash Flow From Financing Activity 129-1481-7
Net Proceeds from Shares 004875
Net Proceeds from Borrowing 0000
Interest Paid 0-10-1
Dividend Paid 0000
Others 1290-5-11
Net Cash Flow 1815-27
PARTICULARSMar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)N/AN/A00
ROCE (%)N/AN/A6.81-15.23
Asset Turnover Ratio0.611.91.491.48
PAT to CFO Conversion(x)N/AN/A2.6N/A
Working Capital Days
Receivable Days35181923
Inventory Days45222122
Payable Days217141157144

Honasa Consumer Ltd Stock News

Honasa Consumer Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Honasa Consumer on 18-May-2024 11:55 is ₹406.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-May-2024 11:55 the market cap of Honasa Consumer stood at ₹12,994.1.
The latest P/E ratio of Honasa Consumer as of 18-May-2024 11:55 is 0.00.
The latest P/B ratio of Honasa Consumer as of 18-May-2024 11:55 is 18.81.
The 52-week high of Honasa Consumer is ₹510.8 and the 52-week low is ₹256.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Honasa Consumer is ₹1,395 ( Cr.) .

About Honasa Consumer Ltd

The company was incorporated as ‘Honasa Consumer Private Limited’ at New Delhi as a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation dated September 16, 2016, issued by the RoC. Subsequently, the company was converted to a public limited company and the name of the company changed to ‘Honasa Consumer Limited’ pursuant to a Shareholder’s resolution dated October 26, 2022 and a fresh certificate of incorporation dated November 11, 2022 was issued by the RoC. 

The company is the largest digital-first beauty and personal care (BPC) company in India in terms of revenue from operations for the Financial Year 2023. Since its inception, the company has worked with the primary objective of developing products that address beauty and personal care problems faced by consumers. For instance, its flagship brand, Mamaearth, is built to service a core customer need for safe-to-use, natural products, and focuses on developing toxin-free beauty products made with natural ingredients. 

Since launching Mamaearth in 2016, the company has added five new brands to its portfolio, namely The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s, and have built a ‘House of Brands’ architecture. As of June 30, 2023, the company’s portfolio of brands with differentiated value propositions includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments. Its success with Mamaearth and its ability to identify and cater to emerging trends has enabled it to develop repeatable brand building playbooks that have helped in scaling its newer brands at a fast pace. These playbooks are powered by the company’s consumer centric approach across various aspects of its business model, including its innovation engine, its digital-first omni-channel distribution, and its technology and data-driven marketing and consumer engagement model.

Additionally, the company continuously seeks to connect better with its consumers and strengthen its brand equity by building ‘purpose-driven’ brands that are associated with environmental and social impact causes. For instance, through the Mamaearth ‘Plant Goodness’ initiative, it works with a non-government organisation to plant trees for orders placed on its direct-to-consumer (DTC) platform and share geo-tagged images of these trees with its consumers. Similarly, The Derma Co. is associated with a ‘Young Scientists’ program wherein children in certain rural parts of India are provided with access to education in science, and Aqualogica is associated with a ‘Fresh Water for All’ initiative wherein it help enable access to clean drinking water for marginalized communities.

Business area of the company

Honasa Consumer is a digital-first house of brands catering to the diverse needs of millennial customers. The company is building a new generation of beauty and personal care brands - driven by purpose, powered by technology, and focused on evolving consumer needs. From natural personal care to science-backed skincare and a modern take on Ayurveda, each of its brands has a unique proposition, created for millennials. Currently, the company’s in-house portfolio of brands comprises household favorites like Mamaearth, The Derma Co., Aqualogica, and Ayuga. It has also made strategic acquisitions to strengthen its portfolio – BBlunt (Products and services), Dr Sheth's (dermatologist formulated skincare brand).

Awards and accreditations

  • 2019: The company won the Super Start Ups Asia award by Startup Asia.
  • 2019: The company won the Best Brands award for ‘Mamaearth’ by Economic Times.
  • 2020: The company won the 2020 BASES Breakthrough Innovations 2020 award by Nielsen.
  • 2020: The company was awarded the Great Place to Work (for December 2020- November 2021) by Great Places to Work Institute, India.
  • 2020: The company won the Times of India Most Valued Mother & Child Brands 2020 award for ‘Mamaearth’.
  • 2020: Varun Alagh won the 40 Under 40 achievers award by Economic Times.
  • 2021: The company won the India’s Most Admired Brand award by Prestigious Brands of Asia- BARC for ‘Mamaearth’.
  • 2021: The company was awarded the Amazon Step Ace Award for ‘Mamaearth’ by Amazon.
  • 2021: The company was awarded the Top Woman Flipstar 2021 award for ‘Mamaearth’ by Flipkart.
  • 2021: The company was awarded the Great Place to Work (for November 2021- December 2022) by Great Places to Work Institute, India.
  • 2022: Ghazal Alagh won the GQ’s 30 Most Influential Young Indians of 2022 by GQ India.
  • 2022: Ghazal Alagh won the Economic Times x Femina Promising Women Leaders of India.
  • 2022: The company won the Amazon Seller Flex Champion 2022 for “Mamaearth”.
  • 2022: The company won the Economic Times Most Promising Brand 2022 award for “Mamaearth”.
  • 2022: The company won the FlipStars Award 2022 award for ‘Mamaearth’ as an assured seller from the Flipkart Seller Hub.
  • 2022: The company won the ‘Dare to Dream’ Emerging Company of the Year (North) award by SAP, TV9Network.
  • 2022: Varun Alagh won the D2C Icons of India award by Shiprocket.
  • 2022: The company won the Grazia Most Loved Brands Awards, 2022 for “Mamaearth”.
  • 2022: The company was recognised by Burgundy Private Hurun for India’s 500 most valuable companies for ‘Mamaearth’.
  • 2022: Ghazal Alagh won the BW 40 Under 40 achievers award.
  • 2023: The company won the India’s Most Trusted Baby Products Brand for Mamaearth in a study covering 8,000 bands across 16 cities pursuant to the India Study
  • 2023 by the TRA’s Brand Trust Report.
  • 2023: The company won an award at the Creative Effectiveness Awards India for Mamamearth: Shadi wala glow everyday in the category of Personal Care – Television by KANTAR, 2023.
  • 2023: Mamaearth won the D2C Brand of the Year at the E-Commerce and Digital Native Awards organised by ET Retail, 2023.
  • 2023: Ghazal Alagh and Varun Alagh won the award for Founders of the Year by Entrepreneur India.

Major events and milestones

  • 2016: The company launched flagship brand Mamaearth that focuses on developing toxin-free beauty products made with natural ingredients.
  • 2017: Raised funding led by Fireside.
  • 2018: Shilpa Shetty Kundra invested in the company.
  • 2018: Raised funding led by Stellaris.
  • 2020: Launched ‘The Derma Co.’ – its science-backed product powered with active ingredients.
  • 2020: Raised funding led by PXV VI.
  • 2020: Crossed annual revenue of Rs 1,000 million in Financial Year 2020.
  • 2021: Raised funding led by Sofina.
  • 2021: Launched Aqualogica – its hydrating skincare brand designed for Indian skin types.
  • 2021: Launched its 1st EBO for Mamaearth.
  • 2021: Launched Ayuga – its ayurvedic product in easy-to-use, modern formats for Indian millennials.
  • 2021: Acquired Momspresso – a content platform providing meaningful and relevant content to women.
  • 2022: Acquired BBlunt – professional hair care and styling products enabling salon like experience at home.
  • 2022: Acquired Dr. Sheth's – A bio-actives based skincare designed by three-generations of skin specialist.
  • 2022: Launched the ‘Mamaearth x Femina Beautiful Indians’ campaign to recognise and reward acts of goodness in society.
  • 2022: Mamaearth emerged as the fastest growing BPC brand in India to reach an annual revenue of Rs 10,000 million (in the preceding 12 months) within six years of launch.
  • 2023: Revenue from offline channels crossed Rs 5,000 million in Financial Year 2023.


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