Shares of FSN E-Commerce Ventures, the parent company of Nykaa, gained over 2.4% on Tuesday, February 11, reaching ₹173. The stock showed upward momentum following its robust Q3 results, where net profit surged 51% YoY to ₹26.4 crore compared to ₹17.5 crore in the year-ago period.
Nykaa’s consolidated revenue from operations grew by 27% YoY to ₹2,267 crore, driven by its core beauty vertical. The vertical posted accelerated growth, with gross merchandise value (GMV) rising in the low thirties, reflecting strong performance across its e-commerce platform, retail stores, and owned brands. The firm’s expenses rose 26% YoY to ₹2,228 crore, primarily due to higher purchases of traded goods at ₹1,285 crore.
Morgan Stanley has maintained its ‘Overweight’ rating on Nykaa, with a target price of ₹200, citing its ability to deliver strong revenue growth and expand EBITDA margins despite challenging retail conditions. The brokerage expects a 29% topline CAGR over FY24-27, with the beauty segment driving growth.
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