Global brokerage Nomura reiterated its ‘Buy’ rating on the stock with a target price of ₹317, citing strong visibility on growth and margin expansion over the next five years.
A key takeaway from the Investor Day was Nykaa’s FY30 guidance. The company expects revenue to grow 2.5-3 times from current levels while expanding EBITDA margins to the low-to-mid teens by FY30.
Nomura said that evolving consumer preferences towards discovery-led and new-age brands are creating a favourable backdrop for Nykaa. The brokerage believes the company is well-positioned to capture a disproportionate share of premium lifestyle spending through its trusted platform, content ecosystem and portfolio of owned brands.
Jefferies also maintained its ‘Buy’ rating on Nykaa with a target price of ₹350, describing the company’s FY30 roadmap as ambitious yet achievable.
The brokerage highlighted management’s target of growing gross merchandise value (GMV) by 2.5-3 times to over $5 billion by FY30, alongside a 4-5x increase in EBITDA and return on capital employed (RoCE) exceeding 40%.
According to Jefferies, the Beauty business is expected to be driven by Nykaa’s omnichannel strategy, advertising revenues and faster fulfilment capabilities. The brokerage also sees the Wellness segment emerging as a meaningful growth avenue through premium and higher-margin product categories.
In Fashion, Jefferies expects curated offerings and brand expansion initiatives to support growth, with the segment targeting high single-digit margins over the next four years.
The brokerage further identified Nykaa’s owned brands portfolio as a key growth engine, particularly as sales from off-platform channels continue to increase. It also highlighted artificial intelligence as a central pillar of the company’s long-term strategy, helping drive customer engagement, personalisation and operational efficiencies.
