Honasa Consumer share price climbs 14% to hit 5-month high after Q4 numbers. Should you buy?

Shares of Honasa Consumer, the parent company of Mamaearth, surged nearly 14% in early trade on Friday, May 23, to a five-month high of ₹314 as investors reacted positively to its March quarter results. 

Despite a decline in net profit, the Street appeared encouraged by the company’s double-digit revenue growth and improved gross margins, reflecting strong operational performance. For Q4FY25, the company's consolidated net profit stood at ₹25 crore, down from ₹30.5 crore reported in the same period of the previous fiscal year. 

Revenue from operations, however, rose 13% to ₹534 crore, compared to ₹471 crore a year ago. The underlying volume growth stood at 21.2% in Q4FY25, outpacing revenue growth.

Gross profit margin improved to 70.7% in Q4FY25, up 76 basis points year-on-year, driven by an improved product mix and operational efficiencies, the company said in its statement. On the operational front, the company reported an EBITDA of ₹27 crore, down from ₹33 crore in Q4FY24, while the EBITDA margin also declined from 7% to 5.1%.

Profit for the full financial year plunged by 32% to ₹72.6 crore in FY25, compared to ₹110.5 crore in the previous year, while the consolidated operational revenue came in at ₹2,066.9 crore in FY25, up 8% from ₹1,919.9 crore in FY24.

Honasa Consumer share price trend

The company’s shares have gained 26% so far this month, building on the healthy gains seen in April and March, when the stock rose 6.3% and 8%, respectively. Despite this recovery, the shares remain sharply lower than their all-time high of ₹547 apiece and are still trading below the IPO price of ₹324 apiece.

Honasa Consumer’s shares, which debuted on Dalal Street in November 2023, rallied strongly over the next 10 months, reaching a record high of ₹547 per share in August 2024. However, the stock struggled to sustain its momentum, posting monthly losses over the following six months before regaining strength in March.

At current levels, the stock is down 42% from its record high and 4.4% below its issue price.

How to trade Honasa Consumer stock post Q4?

As Honasa Consumer’s share price has recovered smartly from its recent lows, experts project that the momentum will continue in the coming trading sessions and expect the stock to reach the ₹380 level, representing a 21% upside from today’s high.

Anshul Jain, Head of Research at Lakshmishree Investments, said, “ Honasa has broken out of a 26-week long rounding bottom pattern with a bullish gap, creating an islandic reversal setup on the weekly chart. This pattern began with a bearish gap and ended with a bullish one, strengthening the reversal signal. The current week’s low at 259 is now a crucial support level. As long as the bulls defend this level, higher targets around 380 remain on the cards in the coming weeks.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.