FSN E-Commerce Ventures Limited (Nykaa) – Technical & Fundamental Analysis
Company Overview:
FSN E-Commerce Ventures Limited (Nykaa) is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience. Since its incorporation in 2012, the company has focused on designing a differentiated brand discovery journey for its consumers. It offers a diverse portfolio of beauty, personal care, and fashion products, including owned-brand products manufactured in-house. Nykaa provides an omnichannel experience to cater to consumer preferences and convenience.
Technical Analysis
Chart Patterns: Cup and handle breakout; Today 1-hour parallel channel breakout
Current Market Price (CMP): ₹260
Targets: ₹301, ₹350
Support Levels: ₹230, ₹195
Recent News & Highlights
✅Q1 FY26 Results: Consolidated net profit surged 142% YoY to ₹23.30 Cr; revenue up 23.4% to ₹2,155 Cr
✅Arbitration Win: Nykaa Fashion received ₹10 Cr compensation from arbitration award
Q1 FY26 Guidance: Management anticipates consolidated net revenue growth at lower end of mid-twenties range YoY
✅Fashion Segment Target: Company expects EBITDA breakeven in fashion by FY26
✅Organic Portfolio Expansion: Aims to increase organic portfolio by 30% annually to reach ₹6,000 Cr GMV
✅Q4 FY25 Performance: EBITDA ₹133 Cr vs ₹93.28 Cr YoY; EBITDA margin improved to 6.47% from 5.59%
✅Corporate Action: NCLT approved merger of Iluminar Media (LBB) into Nykaa Fashion
Analytical Summary
Operational Excellence: Revenue growth of 24.5% YoY with net profit doubling to ₹66.08 Cr demonstrates strong execution and operating leverage. The company is scaling both beauty and fashion verticals while expanding margins.
Capital Structure: Debt increased 41% to ₹961 Cr, but debt-to-equity remains negligible at 0.04, showing conservative leverage. ROE at 5.9% suggests room for improvement in capital efficiency.
Valuation Risk: PE of 675.77 and PB of 40.5 reflect aggressive growth expectations. EV/EBITDA of 117.5 leaves minimal margin of safety, requiring caution for long-term investors.
SWOT Analysis
Strengths (16 Factors):
Rising net and operating cash flows for 2 consecutive years
Strong EPS growth; quarterly profit margins expanding
Improving RoCE, ROE, and ROA
Consistent revenue growth for past 2 quarters
Clean governance; zero promoter pledge
Weaknesses (3 Factors):
Promoter shareholding dilution
Expensive valuation (PE > 40) limits margin of safety
Opportunities (1 Factor):
Increasing FII/FPI shareholding validates institutional interest
Disclaimer
This analysis is for educational and informational purposes only. It does not constitute investment advice. Trading and investing in stocks involve risks, and individuals should conduct their own due diligence or consult with a qualified financial advisor before making any investment decisions. The author is not responsible for any gains or losses arising from the use of this analysis.
Company Overview:
FSN E-Commerce Ventures Limited (Nykaa) is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience. Since its incorporation in 2012, the company has focused on designing a differentiated brand discovery journey for its consumers. It offers a diverse portfolio of beauty, personal care, and fashion products, including owned-brand products manufactured in-house. Nykaa provides an omnichannel experience to cater to consumer preferences and convenience.
Technical Analysis
Chart Patterns: Cup and handle breakout; Today 1-hour parallel channel breakout
Current Market Price (CMP): ₹260
Targets: ₹301, ₹350
Support Levels: ₹230, ₹195
Recent News & Highlights
✅Q1 FY26 Results: Consolidated net profit surged 142% YoY to ₹23.30 Cr; revenue up 23.4% to ₹2,155 Cr
✅Arbitration Win: Nykaa Fashion received ₹10 Cr compensation from arbitration award
Q1 FY26 Guidance: Management anticipates consolidated net revenue growth at lower end of mid-twenties range YoY
✅Fashion Segment Target: Company expects EBITDA breakeven in fashion by FY26
✅Organic Portfolio Expansion: Aims to increase organic portfolio by 30% annually to reach ₹6,000 Cr GMV
✅Q4 FY25 Performance: EBITDA ₹133 Cr vs ₹93.28 Cr YoY; EBITDA margin improved to 6.47% from 5.59%
✅Corporate Action: NCLT approved merger of Iluminar Media (LBB) into Nykaa Fashion
Analytical Summary
Operational Excellence: Revenue growth of 24.5% YoY with net profit doubling to ₹66.08 Cr demonstrates strong execution and operating leverage. The company is scaling both beauty and fashion verticals while expanding margins.
Capital Structure: Debt increased 41% to ₹961 Cr, but debt-to-equity remains negligible at 0.04, showing conservative leverage. ROE at 5.9% suggests room for improvement in capital efficiency.
Valuation Risk: PE of 675.77 and PB of 40.5 reflect aggressive growth expectations. EV/EBITDA of 117.5 leaves minimal margin of safety, requiring caution for long-term investors.
SWOT Analysis
Strengths (16 Factors):
Rising net and operating cash flows for 2 consecutive years
Strong EPS growth; quarterly profit margins expanding
Improving RoCE, ROE, and ROA
Consistent revenue growth for past 2 quarters
Clean governance; zero promoter pledge
Weaknesses (3 Factors):
Promoter shareholding dilution
Expensive valuation (PE > 40) limits margin of safety
Opportunities (1 Factor):
Increasing FII/FPI shareholding validates institutional interest
Disclaimer
This analysis is for educational and informational purposes only. It does not constitute investment advice. Trading and investing in stocks involve risks, and individuals should conduct their own due diligence or consult with a qualified financial advisor before making any investment decisions. The author is not responsible for any gains or losses arising from the use of this analysis.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.