Buy FSN E-Commerce Ventures; target of Rs 198: Geojit Financial Services

Geojit Financial Services is bullish on FSN E-Commerce Ventures has recommended buy rating on the stock with a target price of Rs 198 in its research report dated December 04, 2024.

Broker Research

December 05, 2024 / 11:41 IST

Buy

26 Aug, 2025 12:21

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Geojit Financial Services research report on FSN E-Commerce Ventures

FSN E-Commerce Ventures Pvt Ltd (Nykaa) is a consumer technology platform provider that distributes beauty, fitness, healthcare, skincare and haircare products via online and physical stores. It has three operating segments: beauty and personal care (BPC), fashion and others, which include Nykaa Man, Superstore and international business. In Q2FY25, Nykaa's revenue grew 24.4% YoY to Rs. 1,875cr, driven by robust performance of the Beauty and Personal Care (BPC) and fashion segments. The BPC segment witnessed a 33.2% YoY growth in revenue to Rs. 1,703cr, fuelled by strong performance in categories such as colour cosmetics, skincare, haircare, fragrances and bath and body care. The segment’s gross merchandise value (GMV) grew 29% YoY to Rs. 2,783cr. The fashion segment grew 27.3% YoY to Rs. 166cr, driven by substantial growth in the core and emerging categories. The segment’s GMV grew 10% YoY to Rs. 863cr. In Q2FY25, total beauty segment orders reached 12.9mn units, reflecting a 24% YoY growth. On the fashion side, however, orders declined to 1.8mn units, marking a 4% YoY decrease. EBITDA improved 28.6% YoY to Rs. 104cr, while margin rose 10bps YoY to 5.5%, owing to cost optimisation. Reported profit after tax increased 44.7% YoY to Rs. 13cr, driven by robust revenue growth and scale efficiencies.

Outlook

Therefore, we reiterate our BUY rating on the stock, with a revised target price of Rs. 198, based on 5.7x FY26E P/S.

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