Street View: India's Nykaa posts strong growth forecast but brokerages flag lofty valuations

Fsn E-Commerce Ventures

07/04/2026 07:17

April 7 (Reuters) - ** Beauty retailer Nykaa expects net revenue to rise in late-20% range in Q4FY26, its fastest in three years

** Nykaa parent FSN E-Commerce Ventures FSNE.NS shares down 2% at 247.45 rupees on Tuesday

FASTER GROWTH MEETS VALUATION WORRIES

** BofA Global Research ("underperform", PT: 220 rupees) says data suggests Nykaa's momentum in both beauty and fashion businesses remains steady with limited competitive intensity uptake

** "We reiterate underperform rating on Nykaa primarily due to expensive valuation" - BofA

     ** Citi ("sell," PT: 215 rupees) says consumer internet and discretionary stocks trade at 30–45x FY28 EV/EBITDA and values Nykaa near top of the range due to faster growth, higher margins

** Investec ("hold," PT: $271) says while Nykaa's performance continues to impress, valuations continue to remain elevated, leaving limited upside

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.Parmar@thomsonreuters.com;))