UBS has upgraded FSN E-Commerce Ventures (Nykaa) to ‘buy’, setting a target price of ₹200 per share, implying an 18.2% upside from the current market price (CMP) of ₹169.24. The upgrade is driven by strong performance in the beauty and personal care (BPC) segment and stable margins despite competitive pressures.
UBS noted that BPC growth continues to improve, and margins have held up well. While the fashion segment remains a “show me” story, the company has reduced EBITDA losses from ₹200-250 million to ₹150-200 million in recent quarters, showing a more disciplined financial approach.
Nykaa is currently trading at a FY27E EV/EBITDA multiple of 42x, compared to the consumer sector average of 25x, while offering a revenue CAGR of 24% for FY25-28, significantly higher than the consumer sector average of 12%.
Disclaimer:
The information provided in this article is for informational purposes only and does not constitute financial or investment advice. Stock market investments are subject to risks, and past performance is not indicative of future results. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions. Business Upturn and its affiliates do not guarantee the accuracy, reliability, or completeness of the market data provided.
