Motilal Oswal stays Neutral on Nykaa, sees just 4% upside to Rs 310 target
Brokerage flags fair valuation at 50x EV/EBITDA despite long-term tailwinds: BPC market doubling to $42B by FY31, Dot & Key crossing Rs 1,000 cr NSV, 240+ stores, and Fashion segment hitting EBITDA break-even by Q4FY26 with 30% GMV growth.
What happened
Motilal Oswal maintains Neutral on Nykaa with Rs 310 target (4% upside), citing fair valuation despite strong long-term beauty and fashion growth, owned-brand
Key facts
- Target Rs 310
- 4% upside
- BPC market $23B to $42B by FY31
- 240+ stores
- Dot & Key >Rs 1,000 cr NSV
- Fashion GMV +30% FY26
- Beauty 2.5-3x by FY30
- Fashion 3-3.5x by FY30
- 50x EV/EBITDA
Why this matters
Fashion approaching EBITDA break-even with 30% GMV growth and a $42B BPC TAM by FY31 sharpens the case for bolt-on beauty brand acquisitions while public-market multiples cap Nykaa's paper currency.