Shares of FSN E-Commerce Ventures aka Nykaa turned volatile Friday morning, erasing an early rally to trade at ₹272.85, down 0.60 per cent from the previous close of ₹274.50, as of 10.52 am. The stock opened sharply higher at ₹283.50 and hit a fresh 52-week high of ₹285.60 before retreating, with sell orders dominating at nearly 70 per cent of total traded quantity. Traded volume of 172.28 lakh shares and a traded value of ₹477.63 crore by mid-morning point to heavy institutional activity. The stock has gained 35.55 per cent over the past year, comfortably outpacing the Nifty Midcap 50's 10.80 per cent return over the same period.

The price action follows Wednesday's 4QFY26 results, which were the proximate trigger. Nykaa reported its highest-ever quarterly EBITDA margin of 8.4 per cent, with revenue rising 28 per cent year-on-year to ₹2,648 crore and net profit surging 313 per cent to ₹79 crore. For FY26, the company crossed the USD 1 billion revenue mark for the first time, with full-year PAT up 183 per cent.

Analyst opinion on the stock is sharply split. Jefferies raised its target price to ₹350 with a Buy, calling the fashion vertical's EBITDA breakeven a sign that management has cracked the code on profitability. CLSA kept an Outperform rating and lifted its target to ₹338 from ₹328, citing faster-than-expected sales growth, though it trimmed FY27–28 earnings estimates marginally on higher depreciation. JM Financial reiterated Buy at ₹335, projecting a roughly 50 per cent EBITDA CAGR through FY29. Morgan Stanley maintained Overweight with a ₹286 target, flagging improving marketing efficiency in the fashion business.

On the other side, HSBC held its Hold rating with a ₹273 target, noting that while execution has been strong, the stock trades at a demanding 67x FY28 EV/EBITDA. Motilal Oswal reiterated Neutral with a ₹300 target, arguing that much of the growth is now priced in after the stock's strong run. Citi maintained its Sell rating with a ₹225 target, the most bearish call on the street.

The stock's current price of ₹272.85 sits below the targets of most bulls but above those of HSBC and Citi, reflecting a market that has yet to reach a firm consensus. With a symbol P/E of 385x, valuation remains the central debate, even as the underlying business continues to deliver.

Published on May 22, 2026