UBS upgrades India's Nykaa to 'buy' as revenue growth sustains despite rivals

Fsn E-Commerce Ventures

07/03/2025 04:32

** Brokerage UBS upgrades rating on Nykaa FSNE.NS to "buy" from "neutral", cuts PT to 200 rupees from 205 rupees

** Despite challenging macro environment and entry of several well funded competitors, Nykaa has maintained "healthy" revenue growth in core beauty products segment at 20%-25%, UBS says

** Moreover, the beauty products retailer gets only 30% of its order value from top 8 cities and thus disruption from quick commerce is "manageable" - UBS

** Stock down 2% on Friday, set to snap four-session gaining streak

** Avg rating of 22 analysts on Nykaa at "buy"; median PT is 192.12 rupees - data compiled by LSEG

** Stock down 4.2% since it missed Q3 profit estimates in February

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))