retail

FSN E-Commerce (Nykaa)

NYKAA · Nifty 50

₹280.95

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionretail sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score95/100 (STRONG). 1 positive flags, 3 concerns.

Historical Context44 similar technical setups. Average outcome: -7.2% decline. 0% positive.

Fundamental

95/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

FSN E-Commerce (Nykaa) scores 95/100 on fundamentals (strong). FSN E-Commerce (Nykaa): BROAD EXPANSION regime.

Fundamental Score: 95/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 13.9% broken into three drivers. Each shows how efficiently the company generates returns.

ROE13.9%=

2.0%Net Margin

2.2xTurnover

3.2xLeverage

ROE of 13.87% is moderate efficiency-driven and stable. Net margin of 2.0% × asset turnover of 2.17x × leverage of 3.2x.

What This Means

Net margin of 2.0% means the company keeps ₹2.0 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 2.17x means the company efficiently uses its assets to generate revenue. Leverage of 3.2x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

45.1%

Operating

4.5%

Net

2.0%

improving

Gross margin 45.1% → operating margin 4.5% → net margin 2.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 3.2x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

ADEQUATE

Interest covered 3.8x — adequate buffer. Debt is manageable. Debt/EBITDA at 1.6x is low — balance sheet has capacity.

Free Cash Flow

STRONG

FCF margin at 4.9% — moderate. Generating cash after investments.

Peer Comparison

FSN E-Commerce (Nykaa) is compared against 3 peers in the retail sector.

DMART FIRSTCRY TRENT

Key Watchpoints

🟢

Breaks above ₹295 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹267 (-5%)

Further downside risk

🟢

Retail sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition

✅ High Earnings Quality: Cash flow covers earnings 3.2x — strong cash conversion

Risk Flags

🔴 1 Critical⚠️ 2 Warning✅ 1 Positive4 total flags

🔴Cash covers only 6% of current liabilities

Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️59% of debt is short-term

Balance Sheet

High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.

⚠️Price/Sales: 8.6x — expensive on revenue basis

Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

✅High promoter holding: 56%

Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

385.2UNAVAILABLE

P/B Ratio

55.2HIGH

Market Cap

₹7832559.3L CrHIGH

From 52W High

98% of high

Sector Peers

← All Stocks Market GPS Daily Brief retail Sector