India's Nykaa swings to YTD gains after 2-day rally on upbeat foreacst

Fsn E-Commerce Ventures

18/06/2024 09:28

** Shares of Nykaa parent FSN E-Commerce Ventures  FSNE.NS 
swing to YTD gains after 2-day rally on upbeat FY26 forecast 
    ** Stock last up ~2.7% on the day, adding to Friday's 2.4%
increase and pushing stock to YTD gains of 1%
    ** Morgan Stanley says Nykaa's target of fashion business
breaking even by FY26 is among "key positives"
    ** Macquarie Equity Research analysts "like" the breakeven
aim, which is based on stronger premium positioning
    ** However, it flags muted margin outlook in mainstay beauty
and personal care (BPC) segment; retains "underperform" rating 
    ** FSNE, on an average, rated "buy" - LSEG data
    ** Nomura though, says FSNE may need to prioritise growth
over margins in competitive fashion industry
    ** Trading vols 2x 30-day avg, but still trailing Friday vol

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))