"Honasa should report industry-leading growth at 27% over the next 3 years. We value at 6x Sep-25 EV/sales (at a discount to HPC peers; implies 67x FY26 PE) to arrive at a price target of Rs 520," Jefferies said, while calling it a high conviction buy.
At 11.02 IST, the companys shares were trading at Rs 287.45 on the National Stock Exchange (NSE). However, in early trade, the stock cracked and went as low as Rs 256.30 apiece – 15% lower than the previous days close.
Ahead of the debut, the company s shares are fetching a premium of Rs 22 in the unlisted market. Considering the upper price band of Rs 324, the stock is likely to start trading with a 10% premium to the issue price.