CLSA initiates Nykaa stock with outperform rating on beauty market growth

Published 24/06/2025, 15:34
CLSA initiates Nykaa stock with outperform rating on beauty market growth

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."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.