Despite a major market decline, investors bought shares of FSN E-Commerce, the parent company of Nykaa, on February 11. The stock increased by 3%, reaching Rs 175 during trading.
However, the stock had previously peaked at Rs 229.90 in August 2024, marking its 52-week high. On February 13, it dipped to Rs 139.95, its 52-week low.
FSN E-Commerce’s Strong Earnings
FSN E-Commerce reported strong earnings for the December quarter. Nykaa’s net profit grew by 51%, rising to Rs 26.4 crore from Rs 17.5 crore in the same period last year.
Revenue also saw a 27% year-on-year increase, reaching Rs 2,267 crore compared to Rs 1,789 crore last year.
Brokerages Provide Positive Outlook
Morgan Stanley: Analysts expect a 29% compound annual growth rate (CAGR) for FSN E-Commerce from FY24 to FY27.
They are optimistic about Nykaa’s consistent revenue, even in tough times, and have set a target price of Rs 200.
Mirae Asset Capital Markets: This firm upgraded its rating from ‘Add’ to ‘Buy’ with a target price of Rs 207.
They believe Nykaa’s strategies will help it grow in the fashion sector and expand into the Gulf Cooperation Council (GCC) market.
Nuvama Institutional Securities: Nuvama also holds a ‘Buy’ rating for Nykaa, setting a target of Rs 205 per share.
They expect strong growth in Nykaa’s beauty and personal care segment, along with improved profitability from reduced losses in fashion and EB2B.
