Nykaa Valued at ₹280: 11% Upside but Neutral Rating for Retail Investors

Nykaa, the popular online beauty and personal‑care store, holds about 27% of India’s market and relies on trusted brands and guided shopping rather than heavy discounts.

Company Overview

Nykaa focuses on authentic products, strong brand relationships and an omni‑channel presence, which helps it stand out from larger platforms that compete mainly on price and logistics.

How Motilal Oswal Values Nykaa

• Beauty & Personal Care (BPC) segment: Valued using a 50× EV/EBITDA multiple, giving a per‑share value of roughly ₹255.
• Fashion segment: Valued with a discounted cash‑flow (DCF) method, adding about ₹31 per share.
• Target price: After accounting for net debt, the combined target is about ₹280 per share, suggesting an 11% upside from the current price.

Investment Rating

Because Nykaa’s share price has risen sharply over the past year, the near‑term upside appears limited. Motilal Oswal therefore starts coverage with a Neutral rating.

Key Takeaways for Retail Investors

• Nykaa is a category specialist with strong brand trust, which can sustain margins.
• The valuation implies modest upside, but recent gains may curb short‑term returns.
• Investors should weigh the neutral rating and consider their own risk tolerance.

Disclaimer

Remember, this is just an analysis, not a prediction. Do your own research or talk to a certified advisor before making any investment decisions.