Honasa acquires Reginald Men for men's grooming; HSBC flags scalability risk

• Honasa Consumer acquired Reginald Men owner BTM Ventures for ₹195 crore, entering the men's grooming segment.
• Reginald Men reported ₹74 crore revenue (TTM) with 72% gross margins and 24% EBITDA margins.
• Honasa aims to grow Reginald Men to over ₹500 crore in revenue from its current ₹70 crore run rate.
• HSBC flagged scalability risks for Honasa's core portfolio and the new acquisition, maintaining a 'Reduce' rating.
• JPMorgan is 'Underweight' due to competitive intensity, while CLSA is 'Outperform' seeing portfolio synergy.

Why It Matters: Honasa's new acquisition brings growth potential but faces significant scalability risks.