Honasa Consumer Ltd. IPO Review

Honasa Consumer Ltd. (HCL), India's largest digital-first beauty and personal care company by FY23 revenue, prioritizes developing solutions for consumer beauty needs. Its flagship brand, Mamaearth, focuses on safe, natural products. Mamaearth is India's fastest-growing BPC brand according to the RedSeer Report. HCL's financial performance over the last three fiscal years shows varying results, with a Q1 FY24 net profit of Rs. 24.72 cr. The issue is priced at a P/BV of 15.97 based on NAV as of June 30, 2023, and 10.39 post-IPO NAV. HCL, with its strong growth and EBITDA margins exceeding 65%, presents an aggressively priced IPO. Investors with a long-term outlook may consider moderate investment.