The share of this e-commerce company jumped up to 5 percent after the company’s net profit and revenue increased by 63 percent and 24 percent YoY, respectively in Q2FY25.
With a market capitalization of Rs 50,662.42 crore, the shares of FSN E-Commerce Ventures Ltd were trading at Rs 177.25 per share, decreasing around 0.23 percent as compared to the previous closing price of Rs 177.65 apiece.
Reason for Rise:-
The shares of the company have seen significant movement after FSN E-Commerce Ventures Ltd announced its financial performance in which revenue magnified by 24 percent on a year-on-year basis from Rs 1,507 crore in Q2FY24 to Rs 1,875 crore in Q2FY25. However, on a Quarter-on-Quarter basis, revenue zoomed by 7 percent from Rs 1,746 crore in Q1FY25 to Rs 1,875 crore in Q2Y25.
Moreover, net profit jumped by 63 percent on a yearly basis from Rs 8 crore in Q2FY24 to Rs 13 crore in Q2FY25, meanwhile, on a quarter-on-quarter basis, net profit also down by 7 percent from Rs 14 crore in Q1FY25 to Rs 13 crore in Q2FY25.
Brokrage Reccomdation:-
Nuvama, one of the well-known brokerages in India, gave a ‘Buy’ call on the e-commerce stock but cut a target price from Rs 220 to Rs 205 apiece, indicating a potential upside of 16 percent from Wednesday’s price of Rs 176 per share.
Brokrage rational:-
Brokerages are expecting, the company will improve in the second half of the current fiscal on the back of higher festive and wedding demand, additionally, Nuvama continues to forecast an improvement in profitability on the back of operative leverage, although we have moderated our expectations due to elevated marketing spends.
Moreover, the cosmetics and personal care sector in India is around Rs 1.1 lakh crore, with just 8% of it coming from e-commerce. Even after correcting Nykaa’s particular categories, the core online addressable market (TAM) is estimated to reach Rs 25,000 crore by FY26, a threefold increase.
Recent expansion:-
The company expanded its stake by acquiring an additional 39% stake in Dot & Key for a total amount of Rs 265 Crs. The company now has a 90% stake in it. It acquired a 51% stake in Dot & Key in FY22.
Business segments:-
Nykaa’s Beauty and Personal Care segment, which contributes 90% of revenue, offers nearly 3,118 brands across categories like skincare, makeup, and wellness with 13.1 million unique transacting customers as of Q1 FY25. It follows an inventory-led model.
Launched in 2018, Nykaa Fashion has expanded to 1,553 brands with over 4.3 million SKUs in women’s, men’s, and kids’ fashion, plus tech and home products. It operates models like Luxe Store, Hidden Gems, and First in Fashion.
Nykaa’s Super Store, an eB2B platform, covers 1,000+ cities and had over 380,000 orders in Q1 FY25. This segment supports retail partners with access to a wide array of products for their business needs.
Company Profile:-
FSN E-commerce Ventures Ltd. (FSNEV), sometimes known as “Nykaa”, is a digitally native consumer technology platform that provides customers with a content-led, lifestyle retail experience. The company’s range of beauty, personal care, and fashion items is wide, and it also manufactures its own brand products.
Written by:- Abhishek Singh
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