New Delhi: The parent company of Nykaa, FSN E-Commerce Ventures, has a "buy" recommendation reinforced by brokerage house Jefferies after the management of the company made a strong presentation.
The management team of Nykaa provided a positive growth prognosis, led by Anchit Nayar, CEO of Beauty E-commerce, and Namrata Penta, AVP of M&A and Investor Relations. Nykaa has a potential upside of approximately 28 percent, according to Jefferies, which has set a target price of Rs 220. In the period between FY24 and FY27, the brokerage projects Nykaa will increase at a compound annual growth rate (CAGR) of approximately 20%.
According to Jefferies, a positive scenario would see Nykaa's growth pick up speed to a 25 percent compound annual growth rate.
The target price could rise to Rs 250, meaning a 45 percent upside. Alternatively, if things go south, the target price may drop to Rs 130, representing a potential 24.5 percent loss.
Growth may then stall to a 15 percent CAGR.
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