Nykaa shares likely to cross Rs 400 mark, analyst lists down triggers on BTTV

Shares of FSN E-Commerce Ventures Ltd, the parent of Nykaa, could be setting up for a fresh leg of upside over the next year. Nykaa stock hit a fresh 52 week high of Rs 325.50, rising 3.34% in the current session despite the ongoing market correction. Market cap of the firm rose to Rs 91,000 crore. Meanwhile, Anshul Jain, Research Analyst & Head of Research at Lakshmishree Investments said that the beauty and fashion retailer may revisit its all-time high as improving fundamentals begin to support the chart structure.

Responding to an investor query on Business Today TV’s Daily Calls, Jain said shareholders should continue to hold the stock, which was trading around Rs 322 and outperforming a weak broader market backdrop.

Resistance zone in focus

Jain said Nykaa has been on his buy list since the stock delivered what he described as a “145 weeks IPO base breakout” near Rs 226. According to him, the stock is now consolidating near an important hurdle around Rs 315.

Jain said after breaking this resistance, the stock could hit a price target of Rs 426. 

In effect, the call is for investors to stay patient as the stock absorbs supply near current levels before attempting a sharper move higher.

Earnings revival driving traction

The more important part of the bullish thesis lies beyond pure technicals. Jain pointed to a visible improvement in Nykaa’s operating performance, saying the company’s earnings and sales trajectory has strengthened meaningfully over the past five quarters.

That matters because Nykaa’s post-listing journey had long been weighed down by concerns around growth quality and profitability. Jain suggested the stock’s earlier underperformance was linked to the absence of strong earnings support in its initial listed phase, but that equation is now changing. Jain said that strong earnings and sales performance over the past five quarters has helped sustain positive investor interest in the stock. 

Why the Street may watch this closely

Nykaa’s resilience is notable because the view came on a day when benchmark indices were under pressure and market sentiment remained cautious. A stock holding near day highs in a weak tape is often read by traders as a sign of relative strength, especially when backed by improving business momentum.

Jain also drew a parallel with another IPO-base breakout pattern that has recently moved close to record highs, arguing that Nykaa may be following a similar, though slower, path. His broader message: the stock may not sprint immediately, but the structure suggests a gradual climb over the next 12 months.

Investor takeaway

For investors already sitting on gains, the message was clear: hold rather than exit in haste. If Nykaa decisively clears the Rs 315 resistance band, Jain believes the stock could work its way toward Rs 426 over the coming year, with stronger earnings and sales acting as the key support for that re-rating.