FSN E-Commerce Ventures Limited

Consumer Cyclical — Internet Retail · NSE

₹345.00+₹6.60 (+1.95%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of FSN E-Commerce Ventures Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

FSN E-Commerce Ventures Limited, through its subsidiaries, manufactures, sells, and distributes beauty and lifestyle products in India and internationally. It operates through three segments: Beauty, Fashion, and Others.

IndustryInternet Retail

SectorConsumer Cyclical

Employees2,028

Annual revenue₹9,929 Cr

How does it make money?

Turns over ₹9,929 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 2,028 employees supports ₹4.90 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.90 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 24.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What is the outlook?

19 analysts covering the stock expect revenue to grow about 25.3% and earnings to grow about 73.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+25.3%

Est. earnings growth+73.8%

Analysts19

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +94% while net margin moved +434% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+94%

Margin effect+434%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 387.6x is demanding — it needs sustained high growth to justify
✓ P/E is 76% below its own historical median of 1628.0x — cheap by its own standards
✗ P/B of 68.70x is a steep premium to book

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

387.6x

3Y Median

1628.0x

40 monthly readings · mean 1604.0x · range 457.1x–2757.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 76% below its 3y median of 1628.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 460% above the peer median of 69.2x.

vs. its own history

Cheap

1628.0x median over 40 months · -76%

vs. sector peers

Expensive

69.2x median of 4 peers · +460%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

126.8x

PEG

3.29

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 5.5% to 7.9% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 1.4% to 13.9%.
Return on capital is rising
ROCE has improved from 6.3% to 24.0%.
High return on capital employed
ROCE of 24.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 55% over 3 years, from ₹798 Cr to ₹1,238 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 5.5% to 7.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 76% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 460% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 19% a year✓ 24.7% CAGR
Latest reported year was 29.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹490 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹98,865 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

387.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

68.70x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.89

Profitable

Profitable on a per-share basis

ROE

13.9%

Moderate

Moderate capital efficiency

ROCE

24.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.83x

Moderate

Moderate leverage

Revenue Growth (YoY)

29.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

250.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹490 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

118.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.3%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

96%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

335.1 / 334.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,117 Cr	₹6,340 Cr	₹7,885 Cr	₹9,929 Cr	+24.7%
EBITDA	₹283 Cr	₹371 Cr	₹499 Cr	₹788 Cr	+40.7%
EBITDA Margin	5.5%	5.9%	6.3%	7.9%	—
PAT (Net Profit)	₹19 Cr	₹32 Cr	₹66 Cr	₹199 Cr	+118.0%
EPS	₹0.07	₹0.11	₹0.23	₹0.7	+115.4%
ROE	1.4%	2.6%	5.1%	13.9%	—
ROCE	6.3%	9.8%	12.8%	24.0%	—
Total Debt	₹798 Cr	₹969 Cr	₹1,321 Cr	₹1,238 Cr	+15.7%
Free Cash Flow	-₹348 Cr	-₹110 Cr	₹339 Cr	₹490 Cr	—

🟢 Revenue has grown at 24.7% a year over 3 years.

🟢 EBITDA has grown at 40.7% a year over 3 years.

🟢 EBITDA Margin has risen from 5.5% to 7.9% over 3 years (+2.4 pts).

🟢 PAT (Net Profit) has grown at 118.0% a year over 3 years.

🟢 EPS has grown at 115.4% a year over 3 years.

🟢 ROE has risen from 1.4% to 13.9% over 3 years (+12.5 pts).

🟢 ROCE has risen from 6.3% to 24.0% over 3 years (+17.7 pts).

🔴 Total Debt has grown at 15.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹348 Cr to ₹490 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,611 Cr

Total Liabilities

₹3,109 Cr

Cash & Equivalents

₹177 Cr

Operating Cash Flow

₹644 Cr

Capex

-₹154 Cr

Shareholding (proxy)

Institutional Holding

32.4%

Insider Holding

56.1%

Corporate Actions

Next Earnings

05 Nov 2026

Analyst Consensus

Recommendations

13 Buy · 6 Hold · 6 Sell

Target Price (Mean)

₹347.96

+0.9% vs CMP

Target Range

₹220 – ₹414

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

4 mixed2 general

FSN E-Commerce Ventures (NSE:NYKAA) — Beauty and Fashion Platforms Explained

Kalkine India, 15 Oct

FSN E-Commerce Ventures Share Price Rise Today Explained

Univest, 09 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Nykaa shares in focus after strong Q2 update | What lies ahead for investors?

Livemint, 05 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Here's Why FSN E-Commerce Ventures (NSE:NYKAA) Has Caught The Eye Of Investors

Simply Wall Street, 19 May

FSN E-Commerce Ventures Nykaa Shares Decline 2% Amidst Strong Financial Performance

Moneycontrol.com, 10 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Nykaa shares rise 4% as Q2 FY27 update points to strong growth across beauty, fashion

The Economic Times, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑