The brokerage believes that Nykaa stands to benefit from growing influx of digital native consumers, as India's retail landscape continues to shift from offline to online and from unorganised to organised format. With a leading share in beauty segment, a portfolio of premium and exclusive brand partnerships, continued momentum in the House of Nykaa portfolio, and improving unit economics within Nykaa Fashion, it has built a differentiated platform across beauy and personal care and fashion.
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Anand Rathi Report
Anand Rathi has initiated coverage on FSN E-Commerce Ventures Ltd. with a Buy rating and a target price of Rs 400, implying a potential upside of 16% from the reports market price of Rs 344, valuing the stock at 50 times FY29e Ebitda.
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The brokerage believe Nykaa should trade at a premium compared to its retail peers, considering massive long-term growth runway, category leadership and margin expansion across core segments
Nykaa saw a significant turnaround in FY26 with a record ~$1 billion revenue, following two years of volatility post-listing led by sluggish growth and persistent margin pressure in fashion vertical.
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Its corporate pivot relies on a high-performing ‘dual-engine' framework:
- rising profitability via premiumisation in core Beauty & Personal Care (BPC) market; and
- structurally rescuing the economics of Fashion vertical.
The brokerage believes that Nykaa stands to benefit from growing influx of digital native consumers, as India's retail landscape continues to shift from offline to online and from unorganised to organised format.
With a leading share in beauty segment, a portfolio of premium and exclusive brand partnerships, continued momentum in the House of Nykaa portfolio, and improving unit economics within Nykaa Fashion, it has built a differentiated platform across beauy and personal care and fashion.
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