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Nykaa shares upside capped after strong rally, Motilal Oswal saysMotilal Oswal said that after the stock's strong performance over the past year, the risk reward now appears balanced, limiting near-term upside.By Meghna Sen  December 23, 2025, 3:51:15 PM IST (Published)2 Min ReadShares of FSN E-Commerce Ventures Ltd., the parent of beauty and fashion retailer Nykaa, gained as much as 2% on Tuesday, December 23, after brokerage firm Motilal Oswal initiated coverage on the stock.

The brokerage began coverage with a 'Neutral' rating and a target price of ₹280 per share, implying an upside of about 11% from current levels.

Motilal Oswal said that after the stock's strong performance over the past year, the risk reward now appears balanced, limiting near-term upside.

The brokerage described Nykaa as a leading specialty platform in beauty and personal care products, bringing brands, consumers and product discovery together within a focused ecosystem.

With a 27% share of India's online beauty and personal care market, Nykaa operates as a category specialist in a segment where product authenticity, brand trust and guided discovery influence purchase decisions more than aggressive discounting or sheer assortment.

Motilal Oswal added that while generalist e-commerce platforms compete largely on logistics and discounts, Nykaa's platform is driven by content, influence and brand trust. Its inventory-led model for beauty products, direct brand relationships and omni-channel presence continue to differentiate it in a market affected by counterfeits and commoditisation.

For the beauty and personal care business, the brokerage assigned a 50 times EV EBITDA multiple, reflecting category leadership, higher margins compared to horizontal platforms and better earnings visibility from owned brands.

This implies a per-share value of ₹255. For the fashion business, Motilal Oswal assigned a per-share value of ₹31.

Nykaa is currently tracked by 25 analysts, of whom 12 have a 'Buy' rating, four recommend 'Hold' and nine have a 'Sell' call.

Shares of FSN E-Commerce Ventures settled 1.32% higher at ₹256.95 on Tuesday. The stock has gained 56% so far in 2025, although it is down 5% over the past month.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Tagsfsne-commerceventuresnykaaNykaaNykaa sharesshare market today