FSN E-Commerce Ventures Ltd. (NYKAA) AI Stock Analysis

• Market Cap: ₹717.55B
• Dividend Yield: N/A
• Average Volume (3M): 465.15K
• Price to Earnings (P/E): 898.7
• Beta (1Y): 0.93
• Revenue Growth: 24.76%
• EPS Growth: 143.12%
• Country: IN
• Employees: 1,669
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.12
• Shares Outstanding: 2,861,600,000
• 10 Day Avg. Volume: 1,046,989
• 30 Day Avg. Volume: 465,148
• PEG Ratio: 0.00
• Price to Book (P/B): 40.11
• Price to Sales (P/S): 6.57
• P/FCF Ratio: 188.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹236.75
• Price Target Upside: -6.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹276.00 ▲(8.53% Upside)

FSN E-Commerce Ventures Ltd. benefits from strong financial performance and positive technical indicators, suggesting growth potential. However, the extremely high P/E ratio raises concerns about overvaluation, which significantly impacts the overall score.

Positive Factors

Revenue Growth

Nykaa's strong revenue growth indicates robust sales performance, suggesting effective market penetration and product demand in the e-commerce sector.

Cash Flow Management

Improved cash flow management enhances Nykaa's ability to reinvest in growth opportunities and maintain financial flexibility, crucial for long-term sustainability.

Profitability Margins

Consistent improvement in profit margins indicates Nykaa's operational efficiency and effective cost control, supporting sustainable profitability.

Negative Factors

Net Profit Margin

A relatively low net profit margin indicates potential challenges in maximizing profitability, which could impact long-term financial health if not addressed.

Free Cash Flow Volatility

Volatility in free cash flow could affect Nykaa's ability to consistently fund operations and growth initiatives, posing a risk to financial stability.

Equity Ratio

A moderate equity ratio suggests a need for Nykaa to strengthen its equity base, enhancing financial stability and reducing reliance on debt.

FSN E-Commerce Ventures Ltd. Business Overview & Revenue Model

Company Description

FSN E-Commerce Ventures Limited, through its subsidiaries, provides a range of beauty, personal care, and fashion products for women, men, kids, tech, and home in India. The company manufactures, distributes, and sells beauty, wellness, fitness, personal care, health care, skin care, hair care products, fashion garments, fashion accessories, and equipment. It also provides western wear, Indian wear, lingerie, footwear, bags, jewellery, accessories, athleisure, tech accessories, home decor, bath, bed, and kitchen products. The company offers its products under the Nykaa Cosmetics, Nykaa Naturals, Kay Beauty, Wanderlust, Nykaa SkinRx, RSVP, Dot & Key, Twenty Dresses, Nykd by Nykaa, Pipa Bella, Gajra Gang, IYKYK, Earth Rhythm, Kica, and Nudge Wellness brands. It retails its products through e-commerce, m-commerce, Internet, and Intranet, as well as through physical stores, stalls, general trade, modern trade, etc. As of March 31, 2022, it operated 105 physical stores under the Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks formats. The company was incorporated in 2012 and is based in Mumbai, India.

How the Company Makes Money

Nykaa generates revenue primarily through its e-commerce sales, which include direct sales of products from its own inventory as well as a marketplace model allowing third-party sellers to list their products on the platform. Key revenue streams include product sales, advertising revenue from brands promoting their products on Nykaa's platform, and membership programs that offer exclusive discounts and benefits to loyal customers. Additionally, Nykaa has established strategic partnerships with various beauty and wellness brands, enhancing its product offerings and expanding its market reach. The company's focus on digital marketing and influencer collaborations further drives sales and customer engagement, contributing significantly to its earnings.

FSN E-Commerce Ventures Ltd. Financial Statement Overview

Summary

FSN E-Commerce Ventures Ltd. shows strong revenue growth and improving profitability margins. The balance sheet is stable with a reasonable debt-to-equity ratio, and cash flow management is improving despite some volatility.

Income Statement

FSN E-Commerce Ventures Ltd. has demonstrated strong revenue growth with a CAGR over the last five years, indicating robust sales performance in the Specialty Retail sector. Gross and net profit margins have shown consistent improvement, reflecting operational efficiency and effective cost management. However, the net profit margin is relatively low, suggesting room for improvement in profitability. EBIT and EBITDA margins have also improved, underscoring better profitability.

Balance Sheet

The company's balance sheet is stable, characterized by a reasonable debt-to-equity ratio that indicates a balanced approach to leveraging. The return on equity has improved, suggesting enhanced shareholder value creation. However, the equity ratio is moderate, pointing to a balanced capital structure. The company should focus on increasing equity to improve financial stability.

Cash Flow

Cash flow analysis reveals significant improvement in free cash flow, reflecting better cash management and operational efficiency. The operating cash flow to net income ratio is positive, showing effective cash generation relative to reported earnings. However, historical fluctuations in free cash flow highlight potential volatility, which needs to be managed.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	83.59B	79.50B	79.50B	63.86B	51.44B	37.74B
Gross Profit	34.36B	25.45B	34.77B	27.39B	22.78B	16.44B
EBITDA	4.85B	5.01B	2.97B	2.00B	1.38B	957.15M
Net Income	797.60M	660.80M	660.80M	322.60M	192.62M	410.75M
Balance Sheet
Total Assets	0.00	39.80B	34.01B	29.50B	26.46B	13.02B
Cash, Cash Equivalents and Short-Term Investments	2.92B	2.92B	2.60B	2.99B	6.57B	2.45B
Total Debt	0.00	13.21B	9.69B	7.98B	5.93B	3.33B
Total Liabilities	-13.43B	26.37B	21.20B	15.58B	13.01B	8.11B
Stockholders Equity	13.43B	13.01B	12.62B	13.78B	13.40B	4.90B
Cash Flow
Free Cash Flow	0.00	2.77B	-1.10B	-3.48B	-4.48B	1.08B
Operating Cash Flow	0.00	4.04B	2.51M	-1.40B	-3.54B	1.50B
Investing Cash Flow	0.00	-4.70B	-101.11M	1.40B	-6.03B	-1.30B
Financing Cash Flow	0.00	1.15B	442.61M	48.69M	9.27B	-377.23M

FSN E-Commerce Ventures Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 254.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NYKAA, the sentiment is Neutral. The current price of 254.3 is below the 20-day moving average (MA) of 263.65, below the 50-day MA of 256.32, and above the 200-day MA of 214.02, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 7.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NYKAA.

FSN E-Commerce Ventures Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHARDAMOTR	66 Neutral	₹62.16B	18.39	―	2.72%	6.96%	6.33%
NYKAA	64 Neutral	₹717.55B	898.75	―	―	24.76%	143.12%
MANYAVAR	62 Neutral	₹156.60B	40.63	―	1.32%	5.77%	-4.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAPPHIRE	50 Neutral	₹79.17B	-10,350.84	―	―	10.18%	-104.25%
ABFRL	48 Neutral	₹92.76B	―	―	―	-32.83%	31.19%

FSN E-Commerce Ventures Ltd. Corporate Events

Nykaa Reports Strong Q2 FY2026 Growth Driven by Beauty and Fashion Verticals

Nykaa has reported accelerated growth momentum in Q2 FY2026, with consolidated GMV growth expected to reach the thirties, driven by strong performances in both its Beauty and Fashion verticals. The Beauty vertical continues its sustained growth trajectory, while the Fashion vertical shows improved net revenue growth due to increased brand assortment and customer acquisition. The company’s overall net revenue growth is expected to be in the mid-twenties, supported by an early festive season start and recent GST reforms, which are anticipated to boost disposable income and long-term growth in consumer categories.

FSN E-Commerce Ventures Ltd. Appoints New Independent Director

FSN E-Commerce Ventures Ltd. has announced the appointment of Mr. Dipak Gupta as an Independent Director, effective October 1, 2025. This strategic move, approved by the Board of Directors and pending member approval, is expected to strengthen the company’s governance and potentially enhance its market position over the next five years.

FSN E-Commerce Ventures Releases Analyst Call Recording

FSN E-Commerce Ventures Ltd. has announced the availability of the audio recording of its recent Analyst/Investor Conference Call, which discussed the unaudited financial results for the quarter ending June 30, 2025. This move aligns with regulatory requirements and enhances transparency for stakeholders, potentially impacting investor confidence and market perception.