Mar'25 View on FSN E-Commerce Ventures Ltd

FSN E-commerce Ventures Ltd. (FSNEV) popularly known as "Nykaa" is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it. After falling from its peak of 430 level, the stock had touched 120 levels and has seen a see saw movement before stabilizing in the current levels and now looks to cross 200 level on back of following inputs. • Healthy BPC revenue growth performance. • Focus on customer acquisition and better unit economics. • Nykaa posted revenue growth of 27% yoy, aided by 25% yoy growth in overall GMV. • BPC reported 32% yoy growth in GMV and revenue growth of 27% yoy. • Fashion reported 8% yoy growth in GMV and a higher 21% yoy revenue growth. • BPC contribution margin (CM) declined 79 bps qoq on account of higher marketing and other costs. Fashion CM improved significantly by ~230 bps yoy, a positive.