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Last Updated on: 18 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 544014 | NSE: HONASA

Honasa Consumer Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 18, 2024, 12:30 pm

Market Cap 13,852 Cr.
Current Price 426
High / Low547/256
Stock P/E108
Book Value 34.7
Dividend Yield0.00 %
ROCE17.1 %
ROE%
Face Value 10.0
PEG Ratio0.73

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Honasa Consumer Ltd

Competitors of Honasa Consumer Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Honasa Consumer Ltd

Quarterly Result

MonthSep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales387355360426460451427498
Expenses356336357395415417398460
Operating Profit301943146342938
OPM %8%5%1%7%10%8%7%8%
Other Income55-146118111818
Interest21111233
Depreciation44555687
Profit before tax3019-1483748373747
Tax %26%21%2%25%21%22%27%25%
Net Profit2215-1512838292735
EPS in Rs1.621.11-11.112.032.770.900.821.07

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales171104609321,3951,7641,837
Expenses215411,7949161,3501,6341,690
Operating Profit-4-432-1,3341645130147
OPM %-26%-393%-290%2%3%7%8%
Other Income141221-1325855
Interest0013579
Depreciation0126152325
Profit before tax-4-428-1,32528-107158168
Tax %0%0%1%29%12%24%
Net Profit-4-428-1,33220-121121128
EPS in Rs-3,431.37-419,637.25-1,306,098.0419,291.26-8.843.735.56
Dividend Payout %0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-10600.00%-211.21%101.50%-705.00%200.00%
Change in YoY Net Profit Growth (%)0.00%10388.79%312.72%-806.50%905.00%

Honasa Consumer Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2019-2020 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:154%
3 Years:57%
TTM:20%
Compounded Profit Growth
10 Years:%
5 Years:97%
3 Years:28%
TTM:106%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital0000136324
Reserves30-437-1,765712-1,302800
Borrowings05931,97401,866110
Other Liabilities42594240249387
Total Liabilities341813039529491,622
Fixed Assets012198126170
CWIP000200
Investments26124164532392426
Other Assets8561183214311,026
Total Assets341813039529491,622

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -4-103052-23218
Cash from Investing Activity -23-117-21-5183-459
Cash from Financing Activity 28129-1481-7344
Net Cash Flow01815-27103

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-4.00-1,025.00-2.0016.0044.0020.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days573527253030
Inventory Days86136115839584
Days Payable231217221210152184
Cash Conversion Cycle-88-46-79-102-27-70
Working Capital Days514-0-1115-6
ROCE %-461%-725%7%7%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2023Mar 2024Jun 2024Sep 2024
Promoters35.34%35.07%35.07%34.98%
FIIs10.12%12.22%13.95%19.31%
DIIs17.58%15.91%17.36%17.49%
Public36.96%36.80%33.62%28.23%
No. of Shareholders53,18651,09544,82465,724

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Invesco India Mid Cap Fund1,702,6281.3278.12N/AN/AN/A
Canara Robeco Small Cap Fund1,655,0000.675.93N/AN/AN/A
PGIM India Midcap Opportunities Fund1,108,3310.4350.85N/AN/AN/A
Invesco India ELSS Tax Saver Fund1,052,1851.5848.27N/AN/AN/A
PGIM India Flexi Cap Fund962,7720.6644.17N/AN/AN/A
Mirae Asset Great Consumer Fund867,5750.8939.8N/AN/AN/A
Sundaram Small Cap Fund715,8090.9232.84N/AN/AN/A
Invesco India Flexi Cap Fund579,6381.1826.59N/AN/AN/A
WhiteOak Capital Flexi Cap Fund539,3170.5824.74N/AN/AN/A
Aditya Birla Sun Life India GenNext Fund372,6020.2717.1N/AN/AN/A

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22
FaceValue10.0010.0010.00
Basic EPS (Rs.)3.57-4.660.53
Diluted EPS (Rs.)3.55-4.660.53
Cash EPS (Rs.)4.35-9.2416413.85
Book Value[Excl.RevalReserv]/Share (Rs.)-21.52-87.07-836393.85
Book Value[Incl.RevalReserv]/Share (Rs.)-21.52-87.07-836393.85
Revenue From Operations / Share (Rs.)59.21109.49725742.31
PBDIT / Share (Rs.)5.763.3224876.15
PBIT / Share (Rs.)4.821.4919572.31
PBT / Share (Rs.)4.54-10.3517260.77
Net Profit / Share (Rs.)3.41-11.0711110.00
NP After MI And SOA / Share (Rs.)3.45-10.4712088.46
PBDIT Margin (%)9.723.033.42
PBIT Margin (%)8.131.362.69
PBT Margin (%)7.66-9.442.37
Net Profit Margin (%)5.75-10.111.53
NP After MI And SOA Margin (%)5.82-9.561.66
Return on Networth / Equity (%)-16.020.00-1.44
Return on Capital Employeed (%)12.822.953.07
Return On Assets (%)6.84-14.771.51
Asset Turnover Ratio (%)1.481.490.00
Current Ratio (X)2.732.262.90
Quick Ratio (X)2.431.852.58
Interest Coverage Ratio (X)20.666.8010.76
Interest Coverage Ratio (Post Tax) (X)13.231.565.81
Enterprise Value (Cr.)12548.960.000.00
EV / Net Operating Revenue (X)6.540.000.00
EV / EBITDA (X)67.180.000.00
MarketCap / Net Operating Revenue (X)6.790.000.00
Price / BV (X)-18.680.000.00
Price / Net Operating Revenue (X)6.790.000.00
EarningsYield0.010.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Honasa Consumer Ltd as of October 18, 2024 is: ₹573.38

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 18, 2024, Honasa Consumer Ltd is Undervalued by 34.60% compared to the current share price ₹426.00

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of Honasa Consumer Ltd as of October 18, 2024 is: ₹1,426.54

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 18, 2024, Honasa Consumer Ltd is Undervalued by 234.87% compared to the current share price ₹426.00

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 148.79%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 2.83, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -68.67, which is a positive sign.
  1. The stock has a low average ROCE of -192.50%, which may not be favorable.
  2. The company has higher borrowings (757.17) compared to reserves (-327.00), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (217.43) and profit (-26.57).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Honasa Consumer Ltd:
    1. Net Profit Margin: 5.75%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 12.82% (Industry Average ROCE: 36.72%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -16.02% (Industry Average ROE: 25.9%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 13.23
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.43
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 108 (Industry average Stock P/E: 47.53)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Personal Care
INDUSTRYADDRESSCONTACT
Unit No. 404, 4th Floor, City Centre, Plot No. 05, New Delhi Delhi 110075Mr.Varun%20Alagh
Chairman,WTD%20&%20CEO
Management
NamePosition Held
Mr. Ghazal AlaghWhole Time Director
Mr. Vivek GambhirIndependent Director
Mr. Subramaniam SomasundaramIndependent Director
Ms. Namita GuptaIndependent Director
Mr. Ishaan MittalNominee Director

FAQ

What is the latest fair value of Honasa Consumer Ltd?

The latest fair value of Honasa Consumer Ltd is ₹573.38.

What is the Market Cap of Honasa Consumer Ltd?

The Market Cap of Honasa Consumer Ltd is 13,852 Cr..

What is the current Stock Price of Honasa Consumer Ltd as on 18 October 2024?

The current stock price of Honasa Consumer Ltd as on 18 October 2024 is ₹426.

What is the High / Low of Honasa Consumer Ltd stocks in FY 2024?

In FY 2024, the High / Low of Honasa Consumer Ltd stocks is 547/256.

What is the Stock P/E of Honasa Consumer Ltd?

The Stock P/E of Honasa Consumer Ltd is 108.

What is the Book Value of Honasa Consumer Ltd?

The Book Value of Honasa Consumer Ltd is 34.7.

What is the Dividend Yield of Honasa Consumer Ltd?

The Dividend Yield of Honasa Consumer Ltd is 0.00 %.

What is the ROCE of Honasa Consumer Ltd?

The ROCE of Honasa Consumer Ltd is 17.1 %.

What is the ROE of Honasa Consumer Ltd?

The ROE of Honasa Consumer Ltd is %.

What is the Face Value of Honasa Consumer Ltd?

The Face Value of Honasa Consumer Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Honasa Consumer Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE