Stock to Sell Today: FSN E-Commerce Ventures Limited, popularly known as Nykaa, is a prominent Indian consumer technology platform. It is one of the market leaders in content-led, lifestyle retail. The company operates primarily through Nykaa Beauty and Nykaa Fashion. The brokerage firm, HDFC Securities, is cautious on Nykaa. Here’s why:
Stock to Sell Today: HDFC Securities cautious on Nykaa – 5 reasons why
Created with AI. Errors are possibleThe brokerage firm, HDFC Securities, maintains a sell rating on FSN E-Commerce Ventures Limited, popularly known as Nykaa. Here are 5 reasons why:
1. Analysts view the company’s FY30 growth guidance as “lofty” and optimistic
2. Reaching the targeted BPC GMV CAGR of 25-30% would require the core business to accelerate beyond FY24-26 performance, which is seen as a stretch.
3. HDFC Securities doubts the projected 700 basis point reduction in marketing and fulfilment costs is achievable without negatively impacting growth.
4. Analysts forecast a 22% revenue CAGR for BPC and 21% for fashion through FY30, falling well short of management’s guidance.
5. With ROCE projected to improve from 12% in FY26 to 25% by FY29, the company is valued at 60x June 2028 estimated EV/EBITDA, based on our DCF valuation model.
FSN E-Commerce Ventures Q4 results
FSN E-Commerce Ventures, on May 21, reported a consolidated net profit of Rs 78 crore in the March-ended quarter of FY2026, up 286% YoY from Rs 20 crore in the year-ago period. The profit after tax (PAT) is attributable to the equity shareholders of the parent.
The Nykaa parent’s revenue from operations in Q4FY26 was up 28% to Rs 2,648 crore versus Rs 2,062 crore posted by the company in the corresponding quarter of the previous financial year.
Revenue from Operations: Rs 2,648.17 crore, up 28.44% YoY (the highest growth rate seen in 12 quarters)
Net Profit (PAT): Rs 78.38 crore, surging 286.49% YoY.Consolidated GMV: Grew 28% YoY to Rs 5,241 crore
EBITDA: Reached Rs 232.07 crore, up 63.09% YoY
EBITDA Margins: Expanded to a record 8.4% (up from 6.5% in Q4 FY25), driven by efficiency across both beauty and fashion
Full Year FY26 PAT: Nearly tripled to Rs 199 crore on a total revenue of Rs 10,022 crore.
FSN E-Commerce Ventures share price today
At the time of writing this report (9:32 AM), the FSN E-Commerce Ventures were trading 0.20 per cent higher at Rs 304.90, compared to the previous closing price of Rs 304.30.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
