Bank of America (BofA) has downgraded Nykaa from “Neutral” to “Underperform” and slashed its target price to ₹150 from ₹225, indicating an 11.8% downside from the current market price of ₹170.
The brokerage cited a slower pace of margin improvement and limited traction in quick commerce as key reasons for the downgrade. It also flagged subdued growth in the apparel industry and increased competition, including Shein’s entry into the market, as challenges to Nykaa’s revenue momentum.
BofA believes the company’s struggle to balance growth with profitability and the slower-than-expected margin improvement in the beauty and personal care (BPC) segment will further pressure its performance.
Disclaimer: This report is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making investment decisions.
