Buy FSN E-Commerce Ventures, target price Rs 2480: JM Financial

JM Financial has buy call on FSN E-Commerce Ventures Ltd. with a target price of Rs 2480. The current market price of FSN E-Commerce Ventures is Rs 1992.

Time period given by analyst is one year when FSN E-Commerce Ventures Ltd. price can reach defined target.
FSN E-Commerce Ventures Ltd., incorporated in the year 2012, is a Small Cap company (having a market cap of Rs 92856.89 Crore) operating in Services sector.


FSN E-Commerce Ventures Ltd. key Products/Revenue Segments include E-Commerce for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 890.46 Crore, up 8.37 % from last quarter Total Income of Rs 821.71 Crore and up 47.21 % from last year same quarter Total Income of Rs 604.90 Crore. Company reported net profit after tax of Rs 1.17 Crore in latest quarter.

Investment Rationale
The brokerage values Nykaa using DCF valuation methodology with explicit forecasts until FY41 to align to the long-term penetration story. Using 10.5% cost of capital and 6.0% perpetuity growth rate, the brokerage derives Dec’22 target price of INR 2,480 per share (~27% upside from CMP) and initiate coverage with a ‘BUY’ rating.