Honasa Consumer Reports Strong Quarterly Growth Amid Long-Term Profitability Concerns

Honasa Consumer, a small-cap player in the FMCG sector, has recently undergone an adjustment in its evaluation. The company reported positive financial performance for the quarter ending June 2025, with notable growth in key metrics. The profit before tax (PBT) less other income for the quarter reached Rs 31.70 crore, reflecting a significant increase of 1065.4% compared to the previous four-quarter average. Additionally, the profit after tax (PAT) stood at Rs 41.33 crore, marking a growth of 127.5% over the same period. The net sales for the quarter were recorded at Rs 595.25 crore, the highest to date.
Despite these positive quarterly results, the company faces challenges in its long-term growth trajectory. Over the past five years, the operating profit has contracted at an annual rate of 22.46%. The return on equity (ROE) is currently at 6.2, and the stock's price-to-book value stands at 7.7, indicating a relatively expensive valuation. Furthermore, the stock has generated a return of -38.24% over the past year and has underperformed against the BSE500 index across multiple time frames.

The company maintains a low debt-to-equity ratio, averaging 0 times, and has seen a slight increase in institutional holdings, which now stand at 35%. These investors typically possess greater resources to analyze company fundamentals.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.