Morgan Stanley has maintained its Overweight rating on FSN E-Commerce Ventures Ltd (Nykaa) with a target price of ₹225, implying a potential upside of 13.4% from the current market price of ₹198.40. The brokerage expects the company’s first-quarter performance for FY26 to be largely in line with estimates.
Nykaa is expected to report consolidated revenue growth at the lower end of the mid-20% range year-on-year, compared to Morgan Stanley’s estimate of 24%. Gross merchandise value (GMV) is expected to remain strong, likely crossing the mid-20s mark, building on the 27% YoY GMV growth reported in Q4FY25.
Morgan Stanley highlighted that growth in the beauty segment remains intact, while the fashion vertical has shown sequential improvement. The brokerage views this as a positive signal for the company’s multi-category strategy and continued execution strength.
Disclaimer: The views expressed above are those of Morgan Stanley and do not constitute investment advice. This article is for informational purposes only.
