Past 10 year’s financial track record analysis by Moneyworks4me indicates that Honasa Consumer Ltd is a below average quality company.
The key valuation ratios of Honasa Consumer Ltd's currently when compared to its past seem to suggest it is in the Fair zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Honasa Consumer Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|
| ROCE % ⓘ | -275.1% | -768.6% | 6.8% | -15.2% | 18.9% | - |
| Value Creation Index ⓘ | NA | NA | -0.5 | NA | 0.4 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | ||||||
| Sales ⓘ | 110 | 460 | 932 | 1,395 | 1,764 | 1,794 |
| Sales YoY Gr. | - | 319% | 102.6% | 49.7% | 26.5% | - |
| Adj EPS ⓘ | -1,29,663.6 | -3,72,601.3 | 16,637.3 | -1.1 | 3.5 | 2.3 |
| YoY Gr. | - | NA | NA | -100% | NA | - |
| BVPS (₹) ⓘ | -4,37,861.1 | -17,69,842.8 | -11,01,452.6 | -89.2 | 33.9 | 35.5 |
| Adj Net Profit ⓘ | -132 | -381 | 17.1 | -15.4 | 113 | 75 |
| Cash Flow from Ops. ⓘ | -10.4 | 29.7 | 52 | -22.9 | 218 | - |
| Debt/CF from Ops. ⓘ | -57.2 | 65.7 | 0 | -0.2 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | NA | NA | 56.5% | 26.5% | ||||
| Adj EPS ⓘ | NA | NA | NA | NA | ||||
| BVPSⓘ | NA | NA | NA | NA | ||||
| Share Price | - | - | - | -35.3% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 30.3 | 34.6 | -3.2 | -2.3 | 12.9 | 6.7 |
| Op. Profit Mgn % ⓘ | -7.1 | 5.9 | 1.7 | 3.6 | 7.4 | 4 |
| Net Profit Mgn % ⓘ | -120.6 | -82.8 | 1.8 | -1.1 | 6.4 | 4.2 |
| Debt to Equity ⓘ | -1.4 | -1.1 | 0 | 0 | 0 | 0 |
| Working Cap Days ⓘ | 0 | 50 | 66 | 74 | 86 | 114 |
| Cash Conv. Cycle ⓘ | 0 | -2 | -9 | -4 | -6 | 70 |
Return on Equity has increased versus last 3 years average to 6.70%
Sales growth is growing at healthy rate in last 3 years 56.54%
Sales growth is good in last 4 quarters at 13.32%
Net Profit has been subdued in last 3 years 0.00%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 2.3 | 2.4 |
| TTM Sales (₹ Cr.) | 1,794 | 1,975 |
| BVPS (₹.) ⓘ | 35.5 | 34.6 |
| Reserves (₹ Cr.) ⓘ | 828 | 800 |
| P/BV ⓘ | 7.43 | 7.61 |
| PE ⓘ | 113.49 | 109.75 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 242.60 / 546.50 |
| All Time Low / High (₹) | 256.10 / 546.50 |
| Market Cap (₹ Cr.) | 8,567 |
| Equity (₹ Cr.) | 324.8 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 69 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|
| Sales | 110 | 460 | 932 | 1,395 | 1,764 |
| Operating Expenses ⓘ | 541 | 1,794 | 916 | 1,350 | 1,634 |
| Manufacturing Costs | 2 | 14 | 20 | 31 | 37 |
| Material Costs | 37 | 133 | 283 | 433 | 540 |
| Employee Cost | 9 | 28 | 72 | 125 | 158 |
| Other Costs ⓘ | 493 | 1,619 | 541 | 760 | 899 |
| Operating Profit ⓘ | -432 | -1,334 | 16 | 45 | 130 |
| Operating Profit Margin (%) | -393.0% | -290.0% | 1.7% | 3.2% | 7.4% |
| Other Income ⓘ | 4 | 12 | 21 | 20 | 58 |
| Interest ⓘ | 0 | 1 | 3 | 5 | 7 |
| Depreciation ⓘ | 1 | 2 | 6 | 15 | 23 |
| Exceptional Items ⓘ | 0 | 0 | 0 | -153 | 0 |
| Profit Before Tax ⓘ | -428 | -1,325 | 28 | -107 | 158 |
| Tax ⓘ | 0 | 8 | 8 | 13 | 37 |
| Profit After Tax | -428 | -1,332 | 20 | -121 | 121 |
| PAT Margin (%) | -389.0% | -289.0% | 2.1% | -8.6% | 6.9% |
| Adjusted EPS (₹) | -4,27,992.8 | -13,32,111.8 | 19,866.5 | -8.8 | 3.7 |
| Dividend Payout Ratio (%) | 0% | 0% | 0% | 0% | 0% |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | -438 | -1,770 | 691 | 576 | 1,100 | |||||
| Share Capital ⓘ | 0 | 0 | 1,793 | 1,929 | 324 | |||||
| Reserves ⓘ | -438 | -1,770 | -1,102 | -1,353 | 775 | |||||
| Minority Interest | 0 | 0 | 0 | 0 | 0 | |||||
| Debt | 593 | 1,954 | 0 | 4 | 0 | |||||
| Long Term Debt | 593 | 1,954 | 0 | 0 | 0 | |||||
| Short Term Debt | 0 | 0 | 0 | 4 | 0 | |||||
| Trade Payables | 22 | 80 | 163 | 180 | 273 | |||||
| Others Liabilities ⓘ | 4 | 38 | 98 | 179 | 240 | |||||
| Total Liabilities ⓘ | 181 | 303 | 952 | 939 | 1,613 | |||||
Fixed Assets | ||||||||||
| Gross Block | 2 | 23 | 105 | 149 | 206 | |||||
| Accumulated Depreciation | 1 | 2 | 7 | 22 | 36 | |||||
| Net Fixed Assetsⓘ | 1 | 21 | 98 | 126 | 170 | |||||
| CWIP ⓘ | 0 | 0 | 2 | 0 | 0 | |||||
| Investmentsⓘ | 124 | 164 | 532 | 392 | 426 | |||||
| Inventories | 14 | 41 | 65 | 103 | 115 | |||||
| Trade Receivables | 11 | 34 | 65 | 114 | 147 | |||||
| Cash Equivalents | 26 | 21 | 79 | 53 | 480 | |||||
| Others Assetsⓘ | 5 | 21 | 113 | 151 | 276 | |||||
| Total Assets ⓘ | 181 | 303 | 952 | 939 | 1,613 | |||||
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | -10 | 30 | 52 | -23 | 218 |
| PBT ⓘ | -428 | -1,325 | 28 | -107 | 158 |
| Adjustment ⓘ | 421 | 1,357 | 9 | 196 | 2 |
| Changes in Working Capital ⓘ | -3 | 4 | 24 | -99 | 89 |
| Tax Paid ⓘ | 0 | -6 | -9 | -12 | -31 |
| Cash Flow From Investing Activity ⓘ | -117 | -21 | -518 | 3 | -459 |
| Capex | 0 | -1 | -3 | -8 | -7 |
| Net Investments | -117 | -22 | -264 | 93 | -437 |
| Others ⓘ | 0 | 2 | -251 | -82 | -15 |
| Cash Flow From Financing Activityⓘ | 129 | -1 | 481 | -7 | 344 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 487 | 5 | 363 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 0 | 0 |
| Interest Paid ⓘ | 0 | -1 | 0 | -5 | -7 |
| Dividend Paid ⓘ | 0 | 0 | 0 | 0 | 0 |
| Others ⓘ | 129 | 0 | -5 | -6 | -12 |
| Net Cash Flow ⓘ | 1 | 8 | 15 | -27 | 103 |
| PARTICULARS | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | N/A | N/A | 0 | 0 | 0 | |||||
| ROCE (%) | N/A | N/A | 6.81 | -15.23 | 18.86 | |||||
| Asset Turnover Ratio | 0.61 | 1.9 | 1.49 | 1.58 | 1.5 | |||||
| PAT to CFO Conversion(x) | N/A | N/A | 2.6 | N/A | 1.8 | Working Capital Days | ||||
| Receivable Days | 35 | 18 | 19 | 22 | 25 | |||||
| Inventory Days | 45 | 22 | 21 | 20 | 21 | |||||
| Payable Days | 217 | 141 | 157 | 144 | 153 | |||||
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
Major events and milestones
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Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
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