Nykaa shares: Anand Rathi initiates coverage on e-commerce stock with 'buy' rating | Check target price, rating
Stock to buy: Brokerage firm Anand Rathi has initiated coverage on e-commerce platform Nykaa share price. The brokerage firm has assigned ‘buy’ rating for long-term with a target price of ₹400.
“We initiate coverage on Nykaa with BUY rating and a TP of Rs400, valuing the stock at 50xFY29e EBITDA. We believe Nykaa should trade at a premiumcompared to its retail peers, considering massive long-term growth runway, category leadership and margin expansion across core segments,” the firm said in a note.
Nykaa staged a strong recovery in FY26, achieving record revenue of approximately $1 billion after two years of post-listing volatility marked by subdued growth and persistent margin pressures in its fashion business.
Its turnaround strategy is centred on a dual-engine approach: improving profitability through premiumisation in its core Beauty and Personal Care (BPC) segment and strengthening the underlying economics of its fashion vertical.
It further added that its turnaround strategy is centred on a dual-engine approach: improving profitability through premiumisation in its core Beauty and Personal Care (BPC) segment and strengthening the underlying economics of its fashion vertical. The company is well-positioned to benefit from the growing number of digitally savvy consumers as India's retail market shifts from offline to online channels and from unorganised to organised retail.
“With a leading share in beauty segment, a portfolio of premium and exclusive brand partnerships, continued momentum in the House of Nykaa portfolio, and improving unit economics within Nykaa Fashion, it has built a differentiated platform across BPC and Fashion,” it added.
Nykaa share price performance
Nykaa shares have delivered strong returns over the medium to long term, despite witnessing some near-term fluctuations. The stock has declined 0.40% over the past week, while gaining 1.35% over the past month, indicating relatively muted movement in the short term.
On a year-to-date (YTD) basis, Nykaa shares have surged 26.68%, while the stock has advanced 30.75% over the past year.
Over the past three years, Nykaa shares have rallied 133.87%, reflecting substantial wealth creation for investors who held the stock during this period.