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Investing.com - CLSA initiated coverage on FSN E-Commerce Ventures (NYKAA:IN) stock with an outperform rating and a price target of INR229.00 on Tuesday.
The research firm identified Nykaa as India’s leading omni-channel beauty retailer and an emerging challenger in online fashion retailing, positioning the company to capitalize on India’s rapidly evolving beauty market.
CLSA noted that rising aspirations combined with growing income levels in India create favorable conditions for Nykaa’s beauty segment, where the firm believes the company is "one of the best-placed names to leverage this theme."
The analysis acknowledged that while Nykaa is making progress in the fashion sector, that market "remains competitive and discount driven," presenting ongoing challenges for the company’s expansion beyond its core beauty business.
CLSA suggested that Nykaa’s stock underperformance since its initial public offering has been "overdone," particularly considering the strong performance of its beauty segment, despite the stock being "expensive on most frameworks."
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