Nykaa Rated 'Sell' By HDFC Securities On Challenging Growth Outlook — Check Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

HDFC Securities Institutional Equities

HDFC Securities has reiterated its Sell rating on FSN E-Commerce Ventures Ltd. with a target price of Rs 200 per share, implying a significant downside from the current market price of Rs 263.

Nykaa’s strategic pivot toward aggressive customer acquisition in beauty and personal care during FY26 remains encouraging, with momentum likely to sustain into Q3, aided by the Pink Friday sale. However, the brokerage cites medium-term growth expectations for BPC remain elevated.

Based on the brokerage's estimates, core BPC (excluding own brands and eB2B) grew at sub-20% in H1 FY26. While own brands delivered ~72% YoY growth, their rising dependence on external channels and the disproportionate contribution from a single private label (Dot & Key, FY26 run-rate: Rs 1,500 crore) raise scalability concerns and question platform health.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.