Nykaa Shares Soar: Nomura Upgrades to 'Buy' with 18% Upside Potential

• Nomura upgraded FSN e-Commerce Ventures Ltd. (Nykaa) shares to a "buy" rating from "hold" on Friday, February 6, following strong December quarter results.
• The brokerage raised its price target for Nykaa to ₹305 from ₹261, implying a potential 18% upside from Thursday's closing levels.
• Nomura anticipates Nykaa's EBITDA to sustain a CAGR of over 25%, driven by margin improvement in Beauty and Personal Care (BPC) and Fashion verticals.
• Nykaa reported a 142% year-on-year growth in consolidated net profit to ₹63 crore and over 60% EBITDA growth in the December quarter.
• Jefferies also maintained its "buy" rating with a price target of ₹315, highlighting strong growth across verticals and nearing break-even in the fashion business.