Shares of Nykaa, the e-commerce giant owned by FSN E-Commerce Ventures, saw a notable rise in early trading on Friday, March 7, 2025. The stock surged by as much as 2.45%, reaching an intraday high of ₹172.95 per share. This uptick followed an upgrade by UBS, a Zurich-based brokerage firm, which raised its rating on Nykaa from ‘Neutral’ to ‘Buy.’
Stock Movement and Market Response
Despite the initial surge, Nykaa’s stock price slightly dipped, trading 0.09% lower at ₹168.65 at 9:25 AM. Meanwhile, the BSE Sensex was showing a negative bias, hovering at 74,274.46.
The rise in Nykaa’s stock price can be attributed to UBS’s decision to upgrade the stock, though they reduced their target price from ₹205 to ₹200. This revised target still reflects an upside of 18.48% from Nykaa’s previous close of ₹168.80 on March 6.
UBS’s Outlook On Nykaa’s Performance
UBS’s upgrade is largely driven by the strong performance of Nykaa’s beauty and personal care segment. The brokerage noted that the segment continues to exceed expectations, demonstrating solid growth while maintaining stable margins despite intense competition in the market.
This positive outlook reflects the continued confidence in Nykaa’s ability to navigate the competitive landscape while delivering strong results. Investors are now watching closely to see if the stock can maintain its upward momentum.
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