Honasa Consumer Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 12:48 am

Market Cap	8,436 Cr.
Current Price	260
High / Low	547/222
Stock P/E	112
Book Value	35.5
Dividend Yield	0.00 %
ROCE	17.1 %
ROE	%
Face Value	10.0
PEG Ratio	0.86

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

Stock P/E Current Price Intrinsic Value

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Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Honasa Consumer Ltd	8,436 Cr.	260	547/222	112	35.5	0.00 %	17.1 %	%	10.0
Ambica Agarbathies Aroma & Industries Ltd	53.2 Cr.	31.0	43.2/23.2	35.5	60.6	0.00 %	5.07 %	3.65 %	10.0
Ador Multi Products Ltd	14.5 Cr.	31.0	45.9/27.6		23.2	0.00 %	33.6 %	26.7 %	10.0
Kaya Ltd	485 Cr.	370	702/267		106	0.00 %	80.4 %	%	10.0
Jyothy Labs Ltd	13,803 Cr.	376	596/367	36.7	51.4	0.93 %	27.0 %	21.2 %	1.00
Industry Average	70,915.79 Cr	2,141.78		53.05	103.86	0.72%	36.43%	29.37%	4.94

All Competitor Stocks of

Quarterly Result

Month	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	387	355	360	426	460	451	427	498
Expenses	356	336	357	395	415	417	398	460
Operating Profit	30	19	4	31	46	34	29	38
OPM %	8%	5%	1%	7%	10%	8%	7%	8%
Other Income	5	5	-146	11	8	11	18	18
Interest	2	1	1	1	1	2	3	3
Depreciation	4	4	5	5	5	6	8	7
Profit before tax	30	19	-148	37	48	37	37	47
Tax %	26%	21%	2%	25%	21%	22%	27%	25%
Net Profit	22	15	-151	28	38	29	27	35
EPS in Rs	1.62	1.11	-11.11	2.03	2.77	0.90	0.82	1.07

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: November 22, 2024, 2:20 pm

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	17	110	460	932	1,395	1,764	1,794
Expenses	21	541	1,794	916	1,350	1,634	1,722
Operating Profit	-4	-432	-1,334	16	45	130	72
OPM %	-26%	-393%	-290%	2%	3%	7%	4%
Other Income	1	4	12	21	-132	58	67
Interest	0	0	1	3	5	7	10
Depreciation	0	1	2	6	15	23	29
Profit before tax	-4	-428	-1,325	28	-107	158	99
Tax %	0%	0%	1%	29%	12%	24%
Net Profit	-4	-428	-1,332	20	-121	121	75
EPS in Rs	-3,431.37	-419,637.25	-1,306,098.04	19,291.26	-8.84	3.73	2.33
Dividend Payout %	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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%

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:	12%

Compounded Profit Growth
10 Years:	%
5 Years:	97%
3 Years:	28%
TTM:	-3%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	-39%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	%
Last Year:	%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 1:29 pm

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	0.01	0.01	0.01	0.01	136	324	325
Reserves	30	-437	-1,765	712	-1,302	800	828
Borrowings	0	593	1,974	0	1,866	110	117
Other Liabilities	4	25	94	240	249	387	420
Total Liabilities	34	181	303	952	949	1,622	1,689
Fixed Assets	0	1	21	98	126	170	336
CWIP	0	0	0	2	0	0	0
Investments	26	124	164	532	392	426	216
Other Assets	8	56	118	321	431	1,026	1,137
Total Assets	34	181	303	952	949	1,622	1,689

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	-4	-10	30	52	-23	218
Cash from Investing Activity +	-23	-117	-21	-518	3	-459
Cash from Financing Activity +	28	129	-1	481	-7	344
Net Cash Flow	0	1	8	15	-27	103

Free Cash Flow

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-4.00	-1,025.00	-2.00	16.00	44.00	20.00

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

Month	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	57	35	27	25	30	30
Inventory Days	86	136	115	83	95	84
Days Payable	231	217	221	210	152	184
Cash Conversion Cycle	-88	-46	-79	-102	-27	-70
Working Capital Days	5	14	-0	-11	15	-6
ROCE %		-461%	-725%	7%	7%	17%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	35.34%	35.07%	35.07%	34.98%
FIIs	10.12%	12.22%	13.95%	19.31%
DIIs	17.58%	15.91%	17.36%	17.49%
Public	36.96%	36.80%	33.62%	28.23%
No. of Shareholders	53,186	51,095	44,824	65,724

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Invesco India Mid Cap Fund	1,702,628	1.32	78.12	372,602	2024-12-18	356.96%
Canara Robeco Small Cap Fund	1,655,000	0.6	75.93	372,602	2024-12-18	344.17%
PGIM India Midcap Opportunities Fund	1,108,331	0.43	50.85	372,602	2024-12-18	197.46%
Invesco India ELSS Tax Saver Fund	1,052,185	1.58	48.27	372,602	2024-12-18	182.39%
PGIM India Flexi Cap Fund	962,772	0.66	44.17	372,602	2024-12-18	158.39%
Mirae Asset Great Consumer Fund	867,575	0.89	39.8	372,602	2024-12-18	132.84%
Sundaram Small Cap Fund	715,809	0.92	32.84	372,602	2024-12-18	92.11%
Invesco India Flexi Cap Fund	579,638	1.18	26.59	372,602	2024-12-18	55.56%
WhiteOak Capital Flexi Cap Fund	539,317	0.58	24.74	372,602	2024-12-18	44.74%
Aditya Birla Sun Life India GenNext Fund	372,602	0.27	17.1	372,602	2024-12-18	0%

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22
FaceValue	10.00	10.00	10.00
Basic EPS (Rs.)	3.57	-4.66	0.53
Diluted EPS (Rs.)	3.55	-4.66	0.53
Cash EPS (Rs.)	4.35	-9.24	16413.85
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.)	59.21	109.49	725742.31
PBDIT / Share (Rs.)	5.76	3.32	24876.15
PBIT / Share (Rs.)	4.82	1.49	19572.31
PBT / Share (Rs.)	4.54	-10.35	17260.77
Net Profit / Share (Rs.)	3.41	-11.07	11110.00
NP After MI And SOA / Share (Rs.)	3.45	-10.47	12088.46
PBDIT Margin (%)	9.72	3.03	3.42
PBIT Margin (%)	8.13	1.36	2.69
PBT Margin (%)	7.66	-9.44	2.37
Net Profit Margin (%)	5.75	-10.11	1.53
NP After MI And SOA Margin (%)	5.82	-9.56	1.66
Return on Networth / Equity (%)	-16.02	0.00	-1.44
Return on Capital Employeed (%)	12.82	2.95	3.07
Return On Assets (%)	6.84	-14.77	1.51
Asset Turnover Ratio (%)	1.48	1.49	0.00
Current Ratio (X)	2.73	2.26	2.90
Quick Ratio (X)	2.43	1.85	2.58
Interest Coverage Ratio (X)	20.66	6.80	10.76
Interest Coverage Ratio (Post Tax) (X)	13.23	1.56	5.81
Enterprise Value (Cr.)	12548.96	0.00	0.00
EV / Net Operating Revenue (X)	6.54	0.00	0.00
EV / EBITDA (X)	67.18	0.00	0.00
MarketCap / Net Operating Revenue (X)	6.79	0.00	0.00
Price / BV (X)	-18.68	0.00	0.00
Price / Net Operating Revenue (X)	6.79	0.00	0.00
EarningsYield	0.01	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 608.33

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 December 21, 2024, is Undervalued by 133.97% compared to the current share price 260.00

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

Intrinsic Value of as of December 21, 2024 is: 1,399.27

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 December 21, 2024, is Undervalued by 438.18% compared to the current share price 260.00

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

Last 5 Year EPS CAGR: 130.02%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of 2.83, which is a positive sign. The stock has a low average Cash Conversion Cycle of -68.67, which is a positive sign.	The stock has a low average ROCE of -192.50%, which may not be favorable. The company has higher borrowings (665.71) compared to reserves (-162.00), which may suggest financial risk. The company has not shown consistent growth in sales (217.43) and profit (-36.43).

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 :
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: 36.43%)
  - 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: 25.7%)
  - 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: 112 (Industry average Stock P/E: 43.11)
  - 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

INDUSTRY	ADDRESS	CONTACT
Unit No. 404, 4th Floor, City Centre, Plot No. 05, New Delhi Delhi 110075	Mr.	Varun%20Alagh Chairman,WTD%20&%20CEO

Management
Name	Position Held
Mr. Ghazal Alagh	Whole Time Director
Mr. Vivek Gambhir	Independent Director
Mr. Subramaniam Somasundaram	Independent Director
Ms. Namita Gupta	Independent Director
Mr. Ishaan Mittal	Nominee Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹608.33, which is 133.97% higher than the current market price of ₹260.00. The stock has a market capitalization of 8,436 Cr. and recorded a high/low of 547/222 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹828 Cr and total liabilities of ₹1,689 Cr.

What is the Market Cap of ?

The Market Cap of is 8,436 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 260.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 547/222.

What is the Stock P/E of ?

The Stock P/E of is 112.

What is the Book Value of ?

The Book Value of is 35.5.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is 17.1 %.

What is the ROE of ?

The ROE of is %.

What is the Face Value of ?

The Face Value of is 10.0.