Nykaa stock nears 52-week high: Will the rally continue? Here's what brokerages say
FSN E-Commerce (Nykaa) stock is approaching its 52-week high amid improving sentiment and strong Q4 results. Read what brokerages predict about future performance.

Nykaa Shares Approach 52-Week High as Sentiment Improves
Shares of FSN E-Commerce Ventures Ltd., the parent company of fashion and beauty marketplace Nykaa, surged in recent trading sessions, nearing their 52-week high amid bullish investor sentiment, improved profitability, and renewed optimism in the e-commerce and consumer discretionary space.
Nykaa stock was last seen trading around ₹185 on the NSE, just a notch below its 52-week high of ₹189.15, marked earlier in the month. The counter has gained over 25% in the last three months and nearly 40% so far in 2025, outperforming broader benchmarks like the Nifty 50.
Q4 Performance Lifts Confidence
The ongoing rally has been driven largely by strong March-quarter results. Nykaa reported a 29% year-on-year rise in consolidated net profit to ₹9.7 crore, alongside a 28% revenue growth to ₹1,667 crore. Gross merchandise value (GMV) rose 29% year-on-year, signaling continued traction in both its beauty and fashion segments.
"Nykaa has clearly delivered a robust performance in Q4 FY25, especially in terms of GMV and margin improvements," said Devang Bhatt, Research Head at IDBI Capital. "The company’s focus on premiumization and private label expansion is starting to reflect in financials."
EBITDA margins improved to 5.4% in Q4 from 5.1% in Q3, further boosting market confidence. The management emphasized continued investment in customer acquisition, supply chain, and retail expansion, albeit with a sharper eye on profitability.
Brokerages Turn Selectively Bullish
Several brokerages have either upgraded the stock or maintained a ‘Buy’ stance, citing improved earnings visibility and margin trajectory.
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Jefferies has retained its ‘Buy’ rating with a target price of ₹205, stating, “Strong beauty GMV growth and profitability uptick point to Nykaa’s successful scale strategy. Fashion remains a work in progress but is heading in the right direction.”
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JM Financial upgraded the stock to ‘Buy’ from ‘Hold’, revising its target to ₹210. “Cost control, high-margin product push, and platform engagement metrics are encouraging. Nykaa is increasingly being seen as a serious long-term e-commerce play,” their note added.
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Nomura, however, maintained a ‘Neutral’ rating, cautioning, “While Q4 results were encouraging, competitive pressures from both horizontal and vertical peers remain elevated. Execution in fashion will be the key to rerating.”
Favorable Industry Tailwinds
Nykaa is well-positioned to benefit from long-term industry trends. India’s beauty and personal care market is expected to grow at a CAGR of 11% to reach $30 billion by 2027. Nykaa’s early-mover advantage, brand recognition, and omnichannel strategy are key enablers in tapping this growth.
“The shift towards premium beauty and personal care, especially among younger consumers in Tier 2/3 cities, is a big positive for Nykaa,” said Anuj Kapoor, FMCG and Retail Analyst at ICICI Securities. “The company is increasingly viewed as a platform business rather than a pure-play retailer.”
Nykaa’s BPC (beauty and personal care) segment contributed over 80% to its EBITDA, showcasing its dominance in this category. The fashion vertical, although still loss-making, has shown improving metrics with a 28% rise in average order value and lower fulfillment costs.
Investor Outlook: Is There More Room to Run?
Nykaa’s rally appears to be driven not just by numbers but also a broader sentiment shift. After facing heavy selling pressure post-IPO in late 2021, the stock now seems to have found strong institutional support, particularly from domestic mutual funds and foreign portfolio investors (FPIs), who increased their stakes during Q4.
Technically, Nykaa is in a bullish zone with the Relative Strength Index (RSI) hovering around 68, not yet in overbought territory. Analysts suggest a decisive breakout above ₹190 could open the gates for a further upside toward ₹210–₹215 levels.
However, market participants caution that valuation remains rich. The stock is currently trading at 146x its FY25 earnings, higher than most consumer discretionary peers.
“Investors with a long-term horizon may continue to accumulate on dips, but those entering now should be cautious of short-term volatility,” said Siddharth Khemka, Head of Retail Research, Motilal Oswal.
Risks to Watch
Despite optimism, several risks remain on the horizon:
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Rising competition from Tata Cliq, Amazon Beauty, and Reliance’s Tira platform.
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Execution delays in the fashion segment.
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Regulatory and compliance scrutiny, especially around influencer marketing and product authenticity.
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Macro pressures like inflation or consumer demand softening could affect discretionary spending.
Bullish, but with a Watchful Eye
Nykaa’s near-term trajectory looks promising, powered by earnings momentum, operational efficiencies, and favorable macro trends. However, rich valuations and execution risks in newer verticals warrant investor caution.
Brokerages are largely positive, but with a bias toward selective accumulation. For now, the street seems content with Nykaa’s progress — the key will be sustaining growth while expanding profitably.
As the stock flirts with its 52-week high, the bigger question for investors is not whether the rally will continue, but whether Nykaa can deliver consistent value creation in the evolving Indian digital commerce landscape.
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