Nykaa - Specialty BPC Player With Offline, Mass, Retail Aspirations: ICICI Securities Initiates Coverage
Nykaa- Specialty Beauty, Personal Care Player With Offline, Mass, (Bigger) Retail Aspirations: ICICI Securities Initiates Coverage
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ICICI Securities Report
FSN E-Commerce Ventures Ltd. is the parent company of Nykaa, an Indian e-commerce player in the business of beauty, wellness and fashion products.
Nykaa presents a combination of:
largest beauty and personal care business in a growth market (India),
good profitability metrics (double-digit Ebitda margin in BPC business) and prudent capital allocation, and
omni-channel in the ‘true sense’ (going online to offline).
To add to this, a strong promoter and professional management provide good visibility on growth momentum while extensions such as fashion (initial signs look promising) highlight the brand strength.
Its strength of content-driven and inventory-driven models in BPC will continue to be key differentiators – the former is a long-drawn journey and cannot be built by a new entrant just on the strength of capital.
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