BUY - NYKAA CMP - Rs. 122 Target - 1: Rs. 190 Target - 2: Rs. 245 Target - 3: Rs. 300 . . Technicals - Trendline with Bullish indecision candle. . . Fundamentals - FSN E-Commerce Ventures Limited, through its subsidiaries, provides a range of beauty, personal care, and fashion products for women, men, kids, tech, and homes in India. 1) FSN E-Commerce Ventures has a ROCE of 4.2%. On its own, that's a low return on capital but it's in line with the industry's average returns of 3.8%. The company has consistently earned 4.2% for the last three years, and the capital employed within the business has risen 380% in that time. 2) Even though ROCE has remained relatively flat over the last three years, the reduction in current liabilities to 36% of total assets, is good to see from a business owner's perspective. This can eliminate some of the risks inherent in the operations because the business has fewer outstanding obligations to its suppliers and or short-term creditors than they did previously. 3) Price-To-Sales vs Fair Ratio: NYKAA is a good value based on its Price-To-Sales Ratio (6.9x) compared to the estimated Fair Price-To-Sales Ratio (8.6x). 4) Price-To-Sales vs Peers: NYKAA is expensive based on its Price-To-Sales Ratio (7.3x) compared to the peer average (4.8x). . . Conclusion - High growth potential with a mediocre balance sheet. . . This is just a view by an expert analyst, please invest at your own risk. . Follow me for more!
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