Nykaa stock near 52 weeks high: Will the rally continue? Here's what brokers say | Einsmark news

Shares of FSN e-commerce Ventures, the parent company of beauty and fashion platform Nykaa, have seen a steady upward trend in recent months. With a surge of nearly 70 percent over the past two years and a 19 percent increase in the past 12 months, the share is now only 9 percent below the peak of 52 weeks of £ 229.90, last seen in August 2024. Recent product launches, the improvement of finance and optimistic guidance raised investor interests: Nykaa’s stock recently closed at £ 209.85, with a profit of 2.3 percent for June – the fourth consecutive monthly advance. It rose 8.5 percent by 4.5 percent in May and rose by 12.8 percent in March. This consistent climb follows a 6 percent dip in February, counteracted by a modest 3 percent profit in January. The recent strength of the share comes because it falls back from a 52 -week low of £ 154.90, which was touched in March 2025. Nykaa starts now, long-term ambitions The momentum also coincides with the launch of Nykaa Now, the company’s new Quick Commerce Platform for Beauty Products. Nykaa, which is already in effect in seven cities, now promises orders within 30 to 120 minutes and places Nykaa competitively in the beauty space that delivers quickly. Looking forward, Nykaa set out a daring expansion plan, which grows three to four times over the next five years. Management expects the fashion business to reach Ebitda Breakeven by FY26, with margins expanding to mid-singing figures by FY28. For his Core Beauty and Personal Care (BPC) vertical, Nykaa is aiming for the ebitda margins of about 10 percent. The second half of the FY26 will also see several introductions of the marquee chairs, which aim to further strengthen growth over both BPC and fashion segments. Broker views: Mixed on fashion, confident on BPC weighed several brokers on the latest Nykaa road map, providing careful optimism. Nomura sees that Nykaa’s BPC segment is well positioned to deliver 27 percent and 25 percent revenue growth in FY26 and FY27 respectively, citing the strong premium beauty presence. However, it remains conservative about the fashion industry, and the management’s expectations describe as ‘ambitious’, especially given the ‘high level of competition’. The brokers predict that fashion margins remain negative on -7 percent with FY27. Nomura maintained a ‘neutral’ rating with a DCF-based target of £ 216, which calls the current valuation of about 5x FY26 EV/Sales Exchange. JM Financial sounded more optimal, especially with the faster -than -expected getaway in fashion. This took note of Nykaa’s aggressive growth in BPC and fashion, together with a strong traction in its EB2B super store vertical. The broker expects stable contribution margins to BPC and Ebitda margin expansion powered by operating lever. It retained a ‘buy’ rating with a March 2026 target of £ 250 Nuvama Institutional Shares reflected similar sentiments, focusing on the company’s long -term potential and profitability pathway card. According to the broker, Nykaa’s BPC segment is expected to grow at a mid-20 percent CAGR between FY25 and FY30, while the fashion section Ebitda Breakeven in FY26 has to reach. Nuvama also noted the potential of Nykaa’s private label Vertical “House of Nykaa”, which targets a GMV of £ 6,000 crore against FY30. It expects further improvements in the profitability of lower losses in fashion and B2B operations and has retained a ‘Buy’ rating with a DCF-based target price of £ 235. Disclaimer: The views and recommendations above are those of individual analysts or brokerage businesses, and not of currency. We advise investors to check with certified experts before making investment decisions.