CLSA has maintained its ‘Outperform’ rating on Honasa Consumer with a target price of ₹350, implying an upside of around 37% from the current market price of ₹255. The brokerage’s positive stance follows Honasa’s announcement of acquiring a 95% stake in BTM Ventures Private Limited, the parent entity of men’s personal care brand Reginald Men.
In its note, CLSA said the acquisition has been completed via a secondary purchase on a no-cash, no-debt basis. The transaction values BTM Ventures at an enterprise value of ₹1.95 billion, translating into implied trailing 12-month multiples of 10.9 times EV/EBITDA and 2.6 times EV/revenue.
The brokerage highlighted that Reginald Men is a men-focused personal care brand, with sunscreen as its core offering, and sees the acquisition as strategically aligned with Honasa’s broader portfolio expansion in the personal care space. CLSA noted that the valuation appears reasonable given the brand’s positioning and category focus.
According to the report, the deal strengthens Honasa’s presence in the men’s grooming and personal care segment, which remains a fast-growing category within the overall beauty and personal care market. CLSA believes the acquisition could support Honasa’s long-term growth ambitions by adding a differentiated brand with a clear product niche.
CLSA retained its target price of ₹350 and ‘Outperform’ rating, indicating that it continues to view Honasa Consumer’s growth prospects favourably following the transaction.
Disclaimer: This article is based on a brokerage report by CLSA. The views expressed are those of the brokerage and are for informational purposes only. This content does not constitute investment advice or a recommendation to buy or sell any securities.