Broker’s call: Nykaa (Neutral)

Target: ₹280

CMP: ₹256.65

FSN E-Commerce Ventures (Nykaa) is a leading specialty platform for beauty and personal care (BPC) products, bringing brands, consumers and discovery together in one focused ecosystem. With a 27 per cent share in India’s online BPC market, Nykaa operates as a category specialist in a segment where product authenticity, brand trust and guided discovery drive purchase decisions more often than aggressive discounting or assortment.

While generalist e-commerce platforms compete on logistics and discounting, Nykaa operates on a platform where content, influence and brand trust drive consumer behaviour. Its inventory-led model for beauty products, direct brand relationships and omni-channel presence continue to differentiate it in a market plagued by counterfeits and commoditisation.

We value Nykaa on the SoTP basis. For the BPC business, we ascribe a 50x EV/EBITDA multiple, reflecting its category leadership, higher margins vs. horizontals, and better earnings visibility from owned brands, implying a pershare value of INR255. For the fashion business, we use the DCF approach, implying a per-share value of INR31. Adjusting for net debt, we arrive at a target price of ₹280, implying 11 per cent upside.

Following the strong share price performance over the past year, the risk-reward appears balanced, limiting near-term upside; accordingly, we initiate coverage on Nykaa with a Neutral rating.

Published on December 23, 2025