Now Reading: Nykaa rated Buy with Rs 475 target on premiumisation
-
01
Nykaa rated Buy with Rs 475 target on premiumisation
Brokerage firm has reiterated a Buy rating on FSN E-Commerce Ventures (Nykaa) with a revised target price of Rs 475, up from Rs 400. The current market price is Rs 332.80. The…
Brokerage firm has reiterated a Buy rating on FSN E-Commerce Ventures (Nykaa) with a revised target price of Rs 475, up from Rs 400. The current market price is Rs 332.80. The call is driven by Nykaa's focus on premium user penetration and premiumisation, which are expected to support a 25 per cent CAGR in beauty and personal care GMV through FY30.
Nykaa retained a 27 per cent share in online BPC despite competition from quick commerce. The brokerage expects Nykaa to regain share as QC penetration plateaus, aided by its high average order value proposition. Improving free cash flow and EBITDA conversion at 59 per cent in FY26 remains ahead of global peers.
Indian Opinion Analysis
Nykaa has consistently defended its position against quick commerce platforms by targeting the premium, high-AOV segment rather than competing on speed or discounts. The brokerage's projection of a 37 per cent ROE by FY30 would be among the highest for a B2C internet platform in India. The next signal to watch is Nykaa's quarterly GMV growth and platform fee revenue, which will show whether the premiumisation strategy is translating into margin gains as forecast.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
