Mamaearth parent Honasa's shares jump 5% as Goldman Sachs initiates coverage, sees 26% upside

Mamaearth parent Honasa Consumer's share price surged over five percent in early trade on August 13, after international brokerage Goldman Sachs initiated coverage on the Beauty and Personal Care (BPC) player. The brokerage said that the "India beauty transformation creates a multi-year growth opportunity". Therefore, it initiated coverage on the player with a buy rating, issuing a target price of Rs 570, indicating an upside of around 26 percent. At 9.30 am, Honasa Consumer stock was quoting Rs 456.25 on the NSE, higher by a percent compared to its previous close.

Goldman Sachs sees two major levers to fuel the 2.5x revenue growth and doubling of EBITDA margins over FY24-30. The portfolio of brands under the Derma skincare brand as well as the offline distribution can be scaled up. The brokerage sees growth opportunity as Honasa doubles its offline distribution to 4,00,000 retail outlets through FY27.