Mumbai: Shares of FSN E-Commerce Ventures Ltd, the parent of Nykaa, tumbled nearly 5% on Monday despite a 193% jump in net profit to ₹20 crore in the March quarter compared with the same period a year ago.
While the core beauty business continues to perform strongly, concerns around sluggish fashion growth, margin pressures, and elevated valuations led to divided opinions among brokerages.
Macquarie was the most bearish on the stock among all brokerages with ‘underperform’ rating and a price target of ₹145 citing steep valuations and intensifying compatition. Citi assigned ‘sell’ with a target of ₹160 citing persistent pressure on margins and underperformance of the fashion business.
