Emkay initiates coverage on Honasa Consumer with a 'buy' rating.

• The target price is set at Rs 500 apiece, implying an upside potential of 19%.
• Sees a steady scale-up in its business
• Expects robust revenue growth of 24% CAGR over FY23–26E.
• Expects a healthy margin to expand to 12% by FY26E.
• Expects to enhance its return profile for FY26E RoE at ~17%.
• A management asset-light approach leads to differentiated product development, new brands and new categories.
• The addition of new brands and inorganic brands creates a funnel.
• Believes category relevance is the management’s top priority.
• Expects the company's return profile to register steady expansion
  

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