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

• Market Cap: ₹758.53B
• Dividend Yield: N/A
• Average Volume (3M): 497.92K
• Price to Earnings (P/E): 950.2
• Beta (1Y): 0.96
• Revenue Growth: 24.57%
• EPS Growth: 106.36%
• Country: IN
• Employees: 1,669
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.08
• Shares Outstanding: 2,861,279,000
• 10 Day Avg. Volume: 1,027,660
• 30 Day Avg. Volume: 497,922
• PEG Ratio: 7.24
• 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: ₹219.44
• Price Target Upside: -17.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 65 Neutral
• Price Target: ₹217.00 ▼(-18.14% Downside)

FSN E-Commerce Ventures Ltd. demonstrates strong financial performance and a stable technical outlook, but the high P/E ratio significantly detracts from its valuation score, indicating overvaluation. The lack of earnings call data and notable corporate events did not impact the score.

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 primarily makes money through the sale of beauty, wellness, and fashion products via its e-commerce platform and physical stores. The company's revenue streams are diversified across its retail operations and proprietary brands. Nykaa earns a commission on products sold by third-party brands on its platform and generates significant revenue from its own private label brands. Additionally, the company benefits from strategic partnerships with various beauty and fashion brands, expanding its product offerings and customer base. Nykaa's marketing services, including brand promotions and advertising on its platform, also contribute to its revenue.

FSN E-Commerce Ventures Ltd. Financial Statement Overview

Summary

FSN E-Commerce Ventures Ltd. exhibits solid financial growth with strong revenue increases and improving profitability margins. Despite a stable balance sheet and better cash flows, low net profit margins and cash flow volatility present challenges.

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	63.86B	51.44B	37.74B	24.41B
Gross Profit	34.36B	25.45B	15.28B	22.78B	15.54B	9.07B
EBITDA	5.48B	5.01B	3.77B	2.87B	1.91B	1.70B
Net Income	797.60M	660.80M	322.65M	192.62M	410.75M	615.52M
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: Positive
• Last Price: 265.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NYKAA, the sentiment is Positive. The current price of 265.1 is above the 20-day moving average (MA) of 244.45, above the 50-day MA of 232.06, and above the 200-day MA of 196.76, indicating a bullish trend. The MACD of 7.48 indicates Negative momentum. The RSI at 71.63 is Negative, neither overbought nor oversold. The STOCH value of 88.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform	₹60.58B	17.92	―	2.48%	2.35%	8.08%
MANYAVAR	66 Neutral	₹169.44B	42.76	―	1.14%	10.20%	2.96%
NYKAA	65 Neutral	₹758.53B	950.18	―	―	24.57%	106.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAPPHIRE	61 Neutral	₹89.67B	1,020.11	―	―	10.62%	-76.06%
ABFRL	53 Neutral	₹101.18B	―	―	―	-19.17%	37.41%

FSN E-Commerce Ventures Ltd. Corporate Events

Nykaa Reports Strong Q1 FY26 Revenue Growth Amid Geopolitical Challenges

FSN E-Commerce Ventures Ltd. reported a positive start to FY26, with consolidated net revenue growth expected in the lower mid-twenties for Q1. Despite geopolitical tensions affecting consumer sentiment during a flagship sale, the beauty segment showed strong GMV growth in the higher mid-twenties, driven by robust performance across all business areas. The fashion segment also demonstrated significant improvement, with GMV growth in the mid-twenties and net revenue growth in the mid-teens, supported by an expanding product range and effective customer acquisition strategies.

FSN E-Commerce Ventures Allots Over 500,000 Shares to Employees

FSN E-Commerce Ventures Ltd. has announced the allotment of 523,900 equity shares following the exercise of vested stock options by its employees under the company’s Employee Stock Option Scheme. This move is expected to align employee interests with company growth, as the newly allotted shares will have equal standing with existing shares, potentially enhancing employee motivation and retention.