1 week ago
Broker Reiterates Buy on Nykaa, Raises Target to ₹475
A broker, or market research firm, thinks Nykaa’s stock could rise.
It gave Nykaa a Buy rating and set a target price of ₹475, compared with a market price of ₹332.80.
The broker believes Nykaa will grow by selling more premium beauty and personal-care products.
It says Nykaa still had a 27% share of online beauty and personal-care sales in FY27.
Quick-commerce companies have grown quickly, but the broker says Nykaa has lost only a limited amount of share.
Nykaa’s products usually have higher order values, which can help pay for delivery and other costs.
The broker expects Nykaa’s beauty and personal-care gross merchandise value to grow about 25% each year through FY30E.
It also expects stronger returns and cash generation as the company grows.
These expectations are why the broker raised its target from ₹400 to ₹475.
The broker reiterated a Buy rating on FSN E-Commerce Ventures (Nykaa) and raised its target price to ₹475 from ₹400.
Nykaa’s current market price was ₹332.80 when the recommendation was issued.
The broker expects about 25% annualized BPC GMV growth through FY30E, driven by premium users and premiumisation.
Nykaa retained a 27% online BPC share in FY27 despite rapid growth in quick commerce, according to the broker.
The broker expects improving profitability, including a 37% ROE and 59% FCF-to-EBITDA conversion in FY26.
- Who
- FSN E-Commerce Ventures, which operates Nykaa, and the unnamed broker issuing the recommendation.
- What
- The broker reiterated a Buy rating on Nykaa and raised its target price to ₹475 from ₹400.
- Where
- India’s online beauty and personal-care market.
- When
- Published August 25, 2026; the estimates cover FY26E through FY30E, with some figures referring to FY27 and FY29E.
- Why
- The broker expects premium user growth, premiumisation, higher platform fees, strong unit economics and improving profitability to support Nykaa’s growth.
Key facts
- Company
- FSN E-Commerce Ventures (Nykaa)
- Rating
- Buy
- Target price
- ₹475, raised from ₹400
- Current market price
- ₹332.80
- Expected BPC GMV growth
- About 25% CAGR through FY30E
- Online BPC share
- 27% in FY27, according to the broker
- Expected FY30E ROE
- 37%
- FY26 FCF/EBITDA conversion
- 59%
Sources
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