Honasa Consumer shares get an upgrade but target projects downside

Shares of Honasa Consumer

, the parent of beauty and personal care brand Mamaearth, are expected to be in focus on Friday, June 12, after global brokerage HSBC upgraded the stock to "Hold" and raised its price target to ₹384 per share.

Despite the target price revision, HSBC's target implies a potential downside of around 8% from the stock's current market price.

The brokerage's upgrade follows Honasa Consumer's recent analyst day, where the company outlined its medium-term growth roadmap.

Management guided for revenue and EBITDA compound annual growth rates (CAGR) of 18% and 28%, respectively, between FY26 and FY31. The company also expects EBITDA margins to expand by 500 basis points to 15% over the same period.

HSBC said Honasa now appears to have a more structured strategy for offline expansion, reducing the likelihood of a repeat of the operational challenges it faced during FY25.

The brokerage has also incorporated the impact of the Reginald acquisition into its forecasts, leading to higher earnings estimates and an increase in its target valuation multiple to 40 times.

According to Bloomberg consensus data, 13 analysts currently cover the stock. Of these, eight have a "Buy" rating, two recommend "Hold", while three have a "Sell" rating.

Honasa Consumer shares ended Thursday's session 0.34% higher at ₹416. The stock has surged nearly 50% so far in 2026 and has gained over the last two trading sessions.