28 August 2024 India | Internet | Company Update

FSN E-Commerce Ventures | BUY

FY24 Annual Report Analysis – Strategy streamlined

Nykaa’s FY24 Annual Report outlined its financial and operating performance and business Sachin Dixit
[email protected] | Tel: (91 22) 66303078
strategy for the coming years. Company expects BPC growth in mid-to-late twenties over the
Swapnil Potdukhe
next 3-4 years with India being where China was in 2007 and sustained economic growth [email protected] | Tel: (91 22) 62241876
expected to drive rising BPC spends per capita. Nykaa Fashion has created its own niche with Atul Borse
the company accounting for 20% market share of online premium fashion, a market [email protected] | Tel: (91 22) 66303134
expected to grow 3.5x over the next 6 years. The segment continues trending towards Eksha Modi
EBITDA profitability driven by successful plugging of leakages by undertaking line-by-line [email protected] | Tel: (91 22) 66303054

efforts such as reducing RTOs, minimising returns, along with improving assortment and
focus on women and premium category. While not building any improvement in contribution
margin for core BPC, we still expect the company to deliver 250bps EBITDA margin expansion Recommendation and Price Target
over the next 3 years, resulting in our Sep’25 TP rising to INR 250. We reiterate BUY with Current Reco. BUY
Nykaa expected to be a key beneficiary of any recovery in demand environment. Previous Reco. BUY
Current Price Target (12M) 250
 Secular tailwinds to drive BPC growth: With India’s GDP per capita expected to reach USD Upside/(Downside) 10.8%
5.5k by 2030, BPC spend per capita is projected to rise to USD 50 from USD 15 in FY24. Previous Price Target 230
Change 8.7%
Further, slow recovery of China market post-pandemic has led to India emerging as a key
focus market for major global brands. Nykaa, the largest beauty distributor with 30%+
Key Data – NYKAA IN
market share, is well-positioned to capitalise on the USD 34bn TAM of Indian BPC by Current Market Price INR226
2028. With FY24 GMV rising 25%, company expects to sustain growth momentum Market cap (bn) INR644.4/US$7.7
around mid-to-late twenties in the medium term. Nykaa has a highly engaged customer Free Float 47.8%
base with 47% of lifetime customers having shopped over the past year. Company Shares in issue (mn) 2,864.4
Diluted share (mn) 2,873.3
continued supply chain investments, now operating 44 warehouses across 16 cities,
3-mon avg daily val (mn) INR2,684.2/US$32.0
leading to a 19% reduction in fulfilment cost per order. As of FY24, Nykaa BPC operates 52-week range 230/131
187 beauty stores across 68 cities with aim of doubling store count by FY28. Omni- Sensex/Nifty 81,712/25,018
channel customers are the biggest growth drivers for Nykaa, with 4-5 times the annual INR/US$ 83.9

consumption value (ACV) compared to single-channel shoppers, and they purchase 3-5
Price Performance
times more frequently. As of FY24, Nykaa offered 3.6k+ brands with 0.2mn SKUs. % 1M 6M 12M
Absolute 23.3 47.3 66.2
 Charting the path to profitability in Fashion: Indian fashion industry is expected to grow
Relative* 22.7 30.4 32.2
3.5x over the next 6 years, reaching USD 200bn by 2030. Currently, average spend per * To the BSE Sensex
customer on Nykaa is about USD 130, which is likely to increase to USD 200 by 2030. In
FY24, Nykaa Fashion GMV grew 27% YoY, driven by categories such as Women Indian
wear (28% YoY) and Western wear (72% YoY), with 48% of business coming from
existing customers. The company aims to achieve NSV growth of 2.5x-3x over the next 3
years, with guidance of becoming EBITDA positive in FY26. In FY24, Nykaa Fashion
implemented several strategic measures, such as converting high RTO customers to
'Prepaid Only,' reducing RTO by 0.8%. Additionally, the company added INR 70mn to its
top line by moving COD restrictions at customer level instead of blocking entire pin codes.
Further, introduction of convenience fees contributed 1% NSV to Nykaa Fashion's
revenue without affecting conversion rates. As of FY24, Nykaa Fashion offered 3.2k+
brands with 3.2 million SKUs.

Financial Summary (INR mn)

Y/E March FY23A FY24A FY25E FY26E FY27E
Net Sales 51,438 63,856 81,413 1,06,386 1,37,349
Sales Growth (%) 36.3 24.1 27.5 30.7 29.1 JM Financial Research is also available on:
EBITDA 2,561 3,461 5,188 8,622 13,695 Bloomberg - JMFR <GO>,
EBITDA Margin (%) 5.0 5.4 6.4 8.1 10.0
Adjusted Net Profit 232 362 1,451 3,573 6,997
Thomson Publisher & Reuters,
Diluted EPS (INR) 0.1 0.1 0.5 1.2 2.4 S&P Capital IQ, FactSet and Visible Alpha
Diluted EPS Growth (%) -90.4 56.2 301.0 146.3 95.8
ROIC (%) 4.6 5.3 12.8 24.0 39.1 Please see Appendix I at the end of this
ROE (%) 1.7 2.7 10.6 21.4 30.7
report for Important Disclosures and
P/E (x) 2,802.5 1,794.5 447.6 181.7 92.8
P/B (x) 46.8 51.3 45.5 35.9 25.6 Disclaimers and Research Analyst
EV/EBITDA (x) 252.8 187.7 125.3 75.2 46.9 Certification.
Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0
Source: Company data, JM Financial. Note: Valuations as of 27/Aug/2024

JM Financial Institutional Securities Limited

FSN E-Commerce Ventures 28 August 2024

 Reiterate ‘BUY’, Sep’25 TP increased to INR 250: While the recent demand environment
has not been favourable, we see Nykaa as the dominant player in a segment with strong
secular tailwinds and expect sustained compounding returns. With demand likely to
improve only in H2FY25, we lower growth estimates marginally while retaining margin
estimates. With contribution margin remaining range bound due to investments in
customer acquisition, operating leverage would result in EBITDA margins inching upwards
FY27 onwards. Resultantly, our Sep’25 TP rises to INR 250 from INR 230 earlier. We
reiterate ‘BUY’ rating, expecting the company to deliver robust numbers during the
festive period this year. Key risks: Ramp-up in BPC competition and sustained higher
marketing expense requirement across segments.

 Superstore continues to be a key strategic pillar: Superstore presents a significant

opportunity with ample headroom for penetration in the unorganised BPC market. In
FY24, Superstore's GMV grew 84% YoY with a 919bps YoY improvement in contribution
margin (as a % of NSV), reaching -18.2%. The platform now has ~0.2mn transacting
retailers across 1,006 cities, with 182 brands listed, registering 1.2mn orders in FY24.
Notably, around 86% of Superstore's revenue in FY24 came from tier-2 and beyond
locations, reiterating the company’s focus on serving the underserved while widening the
BPC funnel. Superstore achieved several key milestones, including the launch of a regional
catalogue, which now represents 15% of the total catalogue and drives 3.71% of GMV.
Additionally, a B2B loyalty program through target schemes boosted monthly spending by
62% among highly engaged retailers. The introduction of Wallet and Supercash has been
aimed at enhancing long-term customer retention, while the personalised brand
recommendations widget achieved a 3.2% click-through rate.

 Global footprint expansion with foray in GCC market: GCC market provides a significant
opportunity to tap into the USD 30bn GCC beauty market with highest spending capacity
in the world with beauty spend per capita of USD 500+. Company has partnered with
170+ globally renowned and unique brands such as Kylie Cosmetics, Dr. Barbara Sturm,
Beauty of Joseon, Augustinus Bader, and many more as of FY24. Nykaa strategises to
replicate its omni-channel approach in the region, with an aim to launch 70 stores in the
next 5 years and capture ~7% of the GCC Prestige beauty market. It needs to be noted
that this expansion is unlikely to require significant capital outlay considering the
company’s frugality in building USD 400mn+ GMV business in Fashion with total
investment requirement (until EBITDA breakeven) of almost USD 60mn. Similarly, the
company has provided a guidance of ~USD 56mn investment needed in eB2B until
breakeven.

 BPC owned brands robust but Fashion owned brands see headwinds on 3P marketplaces:
BPC owned brands portfolio includes 13 brands with GMV growth of 39% YoY,
contributing to 13.1% of BPC GMV in FY24 (up 120bps YoY).

1. Dot & Key: Reached an annualised GMV run rate of INR 7bn+, as of Mar’24 with
products available across 187 Nykaa physical stores and 800+ GT stores. Dot & Key
reported revenue of INR 1.98bn in FY24, delivering 3.4x YoY growth.
2. Nykaa Cosmetics: Reached an annualised GMV run rate of INR 3bn+, c. 20% YoY
growth.
3. Kay Beauty: Reached an annualised GMV run rate of INR 1.7bn+, c. 30% YoY
growth. As of FY24, Kay Beauty has ~1.4mn+ social media followers and retails
through 500+ offline stores.
Fashion owned brands portfolio includes 14 brands with GMV growth of 25% YoY,
contributing 12.7% of Fashion GMV (down 20bps YoY). While Nykd has broken out
comprehensively with scale doubling in FY24, other larger fashion owned brands such as
Twenty Dresses and RSVP have been muted due to their dependence on other online
marketplaces that have had a tough FY24. This gets reflected by the fact that
contribution from other marketplaces in Fashion owned brands GMV dropped to 19% in
FY24 from 28% in FY23.

1. Nykd: Reached an annualised GMV run rate of ~INR 1.6bn, delivering 95% YoY
growth. As of FY24, the product retails through 13 EBOs and 1,500 GT stores.

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FSN E-Commerce Ventures 28 August 2024

2. Twenty Dresses: Reached an annualised GMV run rate of INR 1.5bn, flat YoY.
Company has recently undergone a management rejig with Ms. Adwaita Nayar expected
to focus on Nykaa’s house of brands. Considering her track record of guiding Fashion
segment through a tough period, we expect substantial innovation across Nykaa’s
owned brands play with a focus on preempting customer needs.

Exhibit 1. Fashion owned brands - GMV channel mix (FY23 vs. FY24)
Nykaa Online Nykaa stores (Nykd EBOs) Nykaa Online Nykaa stores (Nykd EBOs)
GT/MT Others (3rd party online marketplaces) GT/MT Others (3rd party online marketplaces)

FY24
FY23
19%

28%

INR 4,149mn
INR 3,312mn 50% 54%
24%

21%
3%
1%

Source: Company, JM Financial

 Content at the core: Nykaa has continued its investment in customer education and
awareness-building efforts in FY24. This is evident through its 17mn followers on social
media, with an average monthly reach of 801mn, and a network of 6,000+ influencers
and creators, achieving an average monthly reach of 3.5mn through creators. Nykaa
offers an in-app hub called ‘Stream,’ where users can watch and purchase products
featured in real-time content. Among its off-platform offerings, ‘Nykaa TV,’ a YouTube-
based platform, had 1.46mn subscribers and garnered 221mn views in FY24. On
Instagram, Nykaa has 4mn+ followers, resulting in more than 7.2bn+ impressions,
reaching ~6.3bn people.

 Nykaa Prive 2.0 enhancing customer loyalty: Nykaa Prive is a loyalty programme for
Beauty and Fashion where members get exclusive offers and discounts, complimentary
gifts, free shipping and access to exclusive members-only content. As of FY24, Prive had
9.5mn members. Initiatives such as price reveals, early access, flash sales and best price
implementation led to a 7% higher conversion rate this year compared to Hot Pink Sale
of 2023 and a 3.3% increase in add-to-carts per page view.

 System performance improvement though tech initiatives: (1) Catalogue automation: This
initiative reduced error rates significantly, dropping from 18% to 4% for the create flow
and from 43% to 1.5% for the update flow. (2) Seller portal enhancements: The
'Discount Automation' feature was introduced for marketplace and non-marketplace
sellers, including an approval upload feature for internal users. This provides thorough
audit trails and reduces discount go-live time to 1 hour. (3) Audience pipeline systems:
The Central Audience Pipeline Systems (CAPS) enables Business Intelligence (BI) teams to
efficiently send cohorts to third-party platforms, reducing turnaround time, safeguarding
personal information, and improving marketing campaign effectiveness. (4) AdTech: It is a
campaign manager that enables brand managers to directly set up ads, including media,
budget, placement and duration, for their brands.

 Nykaa enabling attractive risk-reward ratio among relevant internet names: We find
Nykaa to be attractively positioned in terms of valuations as well as near-term triggers.
Not only does the company look cheaper compared to Zomato and PB Fintech at Pre Ind
AS EBITDA multiple (best multiple for comparison as it includes rental payments for Nykaa
and Delhivery while also negating the benefit that Zomato and PB Fintech receive from
treasury income in case of comparison of PAT multiples), it also needs to be noted that
market has factored in significant growth and profitability for these names. In case of
Nykaa, we find the forecasts to be fairly practical with potential for positive surprises.
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FSN E-Commerce Ventures 28 August 2024

Near-term triggers include: (1) Festive season ramp-up has started and if we finally see
decent demand recovery this Q3, Nykaa could see a breakout quarter. In years prior to
the on-going discretionary demand slowdown, Nykaa used to see absolute EBITDA
double in Q3 on a sequential basis. (2) Fashion segment has continued to improve
margins with CM hitting 10.2% of NSV in Q1FY25. As the visibility of EBITDA breakeven
for the segment improves, there could be incremental value being ascribed to the
segment. (3) Nykaa has been investing heavily in customer acquisition over the past
couple of quarters resulting in flat CM in BPC segment but even a conservative 22-24%
topline growth will result in EBITDAM rising 60-100bps YoY.

Exhibit 2. Internet valuation comparables

Company Revenue Pre Ind AS EBITDA PAT

in INR Mn FY24 FY25 FY26 FY27 FY28 FY24 FY25 FY26 FY27 FY28 FY24 FY25 FY26 FY27 FY28

CarTrade 4,899 6,525 7,776 9,214 10,814 462 1,098 1,751 2,378 3,207 765 1,280 1,721 2,265 2,978

At CMP 8.7x 6.5x 5.5x 4.6x 4.0x 92.4x 38.9x 24.4x 18.0x 13.3x 55.9x 33.4x 24.8x 18.9x 14.3x

At TP 11.1x 8.4x 7.0x 5.9x 5.0x 117.9x 49.6x 31.1x 22.9x 17.0x 71.3x 42.6x 31.7x 24.1x 18.3x

Delhivery 81,415 93,972 111,706 131,564 153,740 -1,503 1,521 5,722 9,820 13,862 -2,268 1,540 3,135 5,797 8,723

At CMP 3.6x 3.1x 2.6x 2.2x 1.9x -194.6x 192.2x 51.1x 29.8x 21.1x -128.9x 189.8x 93.3x 50.4x 33.5x

At TP 3.4x 3.0x 2.5x 2.1x 1.8x -185.5x 183.2x 48.7x 28.4x 20.1x -122.9x 181.0x 88.9x 48.1x 32.0x

Nykaa 63,856 81,413 106,386 137,349 174,814 2,178 3,834 6,998 11,757 18,073 322 1,426 3,548 7,007 11,753

At CMP 10.2x 8.0x 6.1x 4.7x 3.7x 299.1x 170.0x 93.1x 55.4x 36.1x 2022.4x 457.0x 183.6x 93.0x 55.4x

At TP 11.3x 8.9x 6.8x 5.2x 4.1x 330.8x 187.9x 103.0x 61.3x 39.9x 2236.4x 505.3x 203.1x 102.8x 61.3x

PB Fintech 34,377 47,536 61,381 76,889 94,589 -2,480 946 4,931 9,259 13,621 670 3,877 7,555 11,315 15,199

At CMP 24.0x 17.4x 13.5x 10.7x 8.7x -332.9x 873.2x 167.5x 89.2x 60.6x 1233.0x 213.0x 109.3x 73.0x 54.3x

At TP 17.4x 12.6x 9.7x 7.8x 6.3x -241.0x 632.2x 121.2x 64.6x 43.9x 892.7x 154.2x 79.1x 52.8x 39.3x

Zomato 121,140 196,945 265,160 345,655 423,942 -1,430 6,483 19,398 35,303 52,661 3,510 10,892 27,092 37,514 53,771

At CMP 17.6x 10.9x 8.1x 6.2x 5.0x -1494.6x 329.7x 110.2x 60.5x 40.6x 608.9x 196.2x 78.9x 57.0x 39.7x

At TP 20.8x 12.8x 9.5x 7.3x 6.0x -1766.2x 389.6x 130.2x 71.5x 48.0x 719.6x 231.9x 93.2x 67.3x 47.0x
Source: JM Financial. Note: CMP – Closing price of 27th Aug 2024

Exhibit 3. India BPC market size (USD bn) Exhibit 4. India Fashion market size (USD bn)
40 250

35
34
200
200
30

25
150
21
20

16 16
93
15
14 100

10

50

0 0
2019 2020 2021 2023 2028 2023 2030

Source: Company, Redseer report Source: Company, Redseer report

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FSN E-Commerce Ventures 28 August 2024

Exhibit 5. Pan- India coverage with 44 warehouses and 187 beauty stores as of FY24

Source: Company

Exhibit 6. Key Operating Metrics

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25
No. of visits (million)
BPC 236 250 266 242 269 286 311 303 330
Fashion 118 122 137 127 126 144 157 144 127

Monthly average unique visitors (million)

BPC 25 25 27 25 27 29 33 32 33
Fashion 16 16 19 17 17 18 19 17 16

Orders (million)
BPC Orders (million) 8.4 8.7 9.9 9.2 9.9 10.5 11.7 11.7 12.4
Fashion Orders (million) 1.5 1.4 1.7 1.4 1.5 1.5 2.0 1.7 1.7

Average order value (INR)

BPC AOV (INR) 1,780 1,872 1,958 1,803 1,849 1,916 2,024 1,788 1,924
Fashion AOV (INR) 3,732 3,940 3,959 4,266 4,058 4,061 4,681 4,546 4,237
Others AOV* (INR) 3,199 3,304 3,709 3,368 3,561 3,541 4,027 3,966
Source: Company, JM Financial. Note: *Others segment has been restructured from 1QFY25 and now includes only international business

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FSN E-Commerce Ventures 28 August 2024

Exhibit 7. Number of visits on Nykaa Platforms Exhibit 8. Monthly Average Unique Visitors
No. of visits (million) Monthly average unique visitors (million)
BPC Fashion
BPC Fashion
33
330
30 29
295 286 27
271 25
250 257 24
234 23
222 231 22 22
19.4 19
17 18 17
16 16 17 16
157
137 144 144
118 122 127 126 127

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial

Exhibit 9. Group GMV Trend Exhibit 10. Group GMV Share

BPC Fashion Others
Consol. GMV (INR bn) YoY 0%
47% 6% 7%
4% 6% 6% 6% 8%
40.0 50%

45% 36.2 5%

33.2
45%

23%
32.2
35.0

27%

26%
37%

25%

26%
26%
36%

27%
29.4

28%

26%
40%

30.0
28.0
26.7 32% 35%

24.5 29%
25.0 23.5
21.6 25%
30%

24%
20.0 25%

77%
20%

15.0
69%

69%
69%

68%

68%
67%

66%
65%
13% 15%

10.0

10%

5.0
5%

0.0 0%

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial. Others includes Nykaa Man Lifestyle and LBB for FY24 quarters.

Exhibit 11. Key Operating costs as % of Revenue Exhibit 12. Margin Trends
Employee exp. A&P exp. Gross margin EBITDA margin Contribution margin

Fulfilment exp. Other expense

11.9% 44.4% 45.3% 43.4% 44.2% 43.5%

11.6% 11.8% 43.1% 42.5% 42.6% 43.3%
11.0% 10.9% 11.1% 11.2%
10.5% 10.7%
11.3%
10.9% 9.9% 9.7% 9.7% 9.6% 9.3% 9.5%
8.8%
10.0% 9.9% 9.8% 9.5% 21.5% 20.7%
8.7% 9.0% 19.9% 20.2% 19.8% 20.2%
18.6% 19.5%
19.9%
8.9%
8.5%
8.3%
6.0%
5.6% 5.5%
5.1% 5.3% 5.1% 5.3% 5.4% 5.4% 5.5% 5.6% 5.5%
5.0% 5.0% 5.0% 5.2%
4.0%
4.6%

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial

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FSN E-Commerce Ventures 28 August 2024

Beauty & Personal Care Operating Metrics

Exhibit 13. GMV trend (INR bn) Exhibit 14. NSV trend (INR bn)
BPC GMV YoY BPC NSV YoY
30.0 45%
16.0
38% 40%

39% 39% 36%

25.4 13.8
40%

14.0 13.4 35%

25.0 23.7 12.7

29%
21.2 11.5 11.7
11.3
35%

29%
30%

20.0
12.0

19.0 27% 10.2 24%

20.0
18.5
30%

9.8 28% 23%

25% 30% 9.2 25%

16.3 16.3
10.0

23% 20%
14.9 25%

19%
15.0 26%
24%
8.0 20%

14%
20%

6.0 15%

10.0 15%

4.0 10%
10%

5.0
5%
2.0 5%

0.0 0%
0.0 0%

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial

Exhibit 15. Orders trend Exhibit 16. Ordering frequency

BPC Orders (million) BPC ordering frequency
3.60
3.57
14.0

3.56
12.4 3.55
3.55 3.53
12.0
11.1 11.1 3.51
10.0 3.50 3.48
10.0
9.5 9.5
8.8
8.1 8.4 3.45
3.42
8.0
3.40
3.40

6.0

3.35
3.34

4.0

3.30

2.0
3.25

0.0 3.20

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial

Exhibit 17. Unique transacting consumer trend Exhibit 18. Average order value (AOV) Trend
BPC - Annual unique transacting consumers (million) BPC AOV (INR)
14.0
13.1 2,100

2,024
11.7
12.0
11.1
10.7 1,958
2,000

10.0 10.3
9.6 1,916 1,924
10.0
9.1
8.6 1,900
1,872
1,849
8.0
1,803
1,780 1,788
1,800

6.0

1,700

4.0

1,600

2.0

0.0 1,500

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial

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FSN E-Commerce Ventures 28 August 2024

Fashion Operating Metrics

Exhibit 19. GMV trend (INR bn) Exhibit 20. NSV trend (INR bn)
Fashion GMV YoY Fashion NSV YoY
12.0 70% 3.0
38% 40%

36% 2.8
59%
10.1
60% 2.3 31% 2.4 35%

10.0 2.5 2.3

50%
8.4 2.1 30%

2.0 32%
43% 7.6 7.7 50%
1.8 25%
8.0
7.2 2.0 1.9
23%
40% 1.7
38%
6.6 6.5
25%

40%

5.8 6.0 24%

6.0 1.5 20%

27% 27%
30% 14%
15%

4.0 1.0
20%

12% 10%

6%
2.0 0.5
10%
5%
1%
0.0 0% 0.0 0%

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial

Exhibit 21. Orders trend Exhibit 22. Ordering frequency

Fashion Orders (million) Fashion ordering frequency
2.5 2.70
2.65

2.00 2.60 2.57

2

1.7 1.71 1.72 1.7 2.50

1.5 1.53
1.4 1.4 2.40
1.5
2.40
2.38
2.32 2.32
2.29 2.30
2.30 2.26
1

2.20

0.5
2.10

0 2.00

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial

Exhibit 23. Unique transacting consumer trend Exhibit 24. Average order value (AOV) trend
Fashion - Annual unique transacting consumers (million) Fashion AOV (INR)
3.5 5,000

3.1 4,681
3.0
2.9 4,546
3.0
2.8
2.6 4,500

2.5 4,266 4,237

2.5
2.4
4,058 4,061
2.1 3,959
2.0 4,000
3,940
2.0
3,732

1.5
3,500

1.0

3,000

0.5

0.0 2,500

1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25

Source: Company, JM Financial Source: Company, JM Financial

JM Financial Institutional Securities Limited Page 8

FSN E-Commerce Ventures 28 August 2024

Reiterate BUY; TP increased to INR 250

Exhibit 25. We tweak estimates to account for slightly lower top-line and profitability in near term
Old New Change
FY25E FY26E FY27E FY28E FY29E FY25E FY26E FY27E FY28E FY29E FY25E FY26E FY27E FY28E FY29E
Group GMV (INR bn) 158.9 206.4 264.8 337.0 422.8 157.3 204.7 263.4 334.3 420.6 -1.0% -0.8% -0.6% -0.8% -0.5%
Consolidated revenue (INR bn) 83.1 108.6 139.8 178.6 224.6 81.4 106.4 137.3 174.8 220.5 -2.1% -2.0% -1.7% -2.1% -1.8%
Revenue growth rate (YoY) 30.2% 30.6% 28.7% 27.8% 25.7% 27.5% 30.7% 29.1% 27.3% 26.2% -270bp 6bp 39bp -49bp 41bp
Consolidated EBITDA (INR bn) 5.3 8.8 13.7 20.3 28.7 5.2 8.6 13.7 20.4 29.0 -3.0% -2.4% 0.3% 0.2% 1.1%
EBITDA margin 6.4% 8.1% 9.8% 11.4% 12.8% 6.4% 8.1% 10.0% 11.7% 13.2% -6bp -3bp 20bp 27bp 37bp
EBIT margin 3.4% 5.4% 7.3% 9.1% 10.7% 3.4% 5.4% 7.5% 9.5% 11.2% -5bp 1bp 29bp 36bp 46bp
PAT (INR bn) 1.48 3.66 6.97 11.75 18.0 1.43 3.55 7.01 11.74 18.1 -3.5% -3.1% 0.6% -0.1% 0.4%
Diluted EPS (INR) 0.51 1.27 2.42 4.09 6.3 0.50 1.23 2.44 4.09 6.3 -3.5% -3.1% 0.6% -0.1% 0.4%
Source: Company, JM Financial

Valuation Methodology: DCF

Exhibit 26. Key DCF assumptions
WACC 12.5%
Revenue CAGR (FY24-29) 28.1%
Revenue CAGR (FY29-34) 19.4%
Revenue CAGR (FY34-41) 12.7%
EBITDA CAGR (FY24-29) 53.0%
EBITDA CAGR (FY29-34) 26.2%
EBITDA CAGR (FY34-41) 14.7%
Tax Rate 25.2%
NPV of cash flow (2024-2041F) 2,99,999
Perpetual growth (%) 6.0%
Implied Exit FCF multiple (X) 15.4x
Terminal value (INR mn) 4,18,812
Enterprise value (INR mn) 7,18,811
Terminal value as % of Enterprise Value 58.3%
Net debt (INR mn, Mar’25) 5,028
Minority Interest (INR mn, Mar’25) 587
Equity value (INR mn) 7,13,196
Number of shares outstanding (diluted, million) 2,873
Equity value per share (INR) 250
Source: JM Financial

Exhibit 27. Sensitivity of Equity Value to WACC and Terminal growth rate

Source: JM Financial, Company

Exhibit 28. Sensitivity of Equity Value to Revenue Growth and EBITDA Margin

Source: JM Financial, Company

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FSN E-Commerce Ventures 28 August 2024

Exhibit 29. Valuation comparables

Rev EBITDA EBIT EPS
EV / Revenue (x) EV / EBITDA (x) EV / EBIT (x) P / E (x)
CAGR CAGR CAGR CAGR
MCap EV
Company FY25E FY26E FY27E 25-27E FY25E FY26E FY27E 25-27E FY25E FY26E FY27E 25-27E FY25E FY26E FY27E 25-27E
(USD bn) (USD bn)
Company
Nykaa* 7.4 7.5 7.7x 5.9x 4.6x 30% 121.0x 72.8x 45.9x 62% 229.6x 109.5x 60.6x 95% 427.6x 173.6x 88.7x 120%
India Retail (IR)
Dmart 38.5 38.5 5.3x 4.4x 3.6x 21% 62.7x 50.3x 41.4x 23% 74.1x 59.0x 48.6x 24% 97.1x 77.4x 63.4x 24%
ABFRL* 3.8 4.9 2.5x 2.2x 1.9x 14% 21.2x 17.1x 14.7x 20% 197.8x 100.0x 59.2x 83% nm nm 230.8x nm
Titan* 37.3 38.8 5.7x 4.9x 4.1x 18% 53.2x 42.6x 36.0x 22% 59.1x 46.0x 38.5x 24% 78.2x 60.7x 50.1x 25%
Page Industries 5.5 5.5 9.0x 7.8x 6.9x 14% 46.4x 39.0x 34.1x 17% 51.2x 42.7x 37.4x 17% 70.4x 58.2x 50.5x 18%
Hindustan Unilever* 77.4 76.1 9.9x 9.1x 8.4x 8% 41.2x 37.1x 33.5x 11% 45.0x 40.5x 36.3x 11% 58.8x 52.6x 46.4x 12%
ITC* 74.1 71.7 7.9x 7.2x 6.7x 9% 21.3x 19.5x 18.0x 9% 22.4x 20.2x 18.6x 10% 28.2x 25.6x 24.7x 7%
Emami 4.4 4.4 9.3x 8.5x 7.8x 9% 33.9x 30.4x 27.3x 11% 39.5x 34.8x 30.9x 13% 42.0x 37.2x 33.1x 13%
Godrej ConsumerProducts* 18.0 18.1 10.1x 9.1x 8.2x 11% 44.6x 38.6x 34.2x 14% 47.6x 41.0x 36.2x 15% 64.7x 52.9x 45.6x 19%
Colgate* 11.6 11.5 15.4x 14.1x 12.9x 9% 45.0x 40.7x 37.0x 10% 49.1x 42.6x 40.1x 11% 64.1x 58.0x 52.3x 11%
Tata Consumer Products 13.8 14.0 6.6x 5.9x 5.5x 9% 42.0x 36.7x 35.9x 8% 53.3x 45.5x 42.7x 12% 72.7x 59.6x 51.7x 19%
Trent 30.7 30.8 14.2x 10.6x 8.5x 29% 91.6x 69.1x 52.6x 32% 129.7x 90.5x 73.6x 33% 139.0x 94.1x 73.9x 37%
Honasa 2.0 1.9 7.0x 5.7x 4.7x 21% 85.9x 53.6x 38.5x 49% 96.9x 61.2x 42.9x 50% 107.6x 72.6x 51.2x 45%
Go Colors 0.7 0.8 7.2x 6.1x 5.2x 18% 22.5x 18.5x 15.8x 19% 40.3x 32.2x 27.6x 21% 67.7x 53.9x 42.4x 26%
India Tech (IT)
Policybazaar* 9.4 9.3 16.5x 12.8x 10.2x 27% 437.9x 133.5x 76.0x 140% nm 170.0x 88.3x nm 218.6x 112.2x 74.9x 71%
Zomato* 26.6 24.9 10.6x 7.9x 6.1x 32% 215.5x 88.7x 51.6x 104% 632.9x 123.0x 62.1x 219% 216.4x 87.0x 62.8x 86%
Info Edge* 11.7 11.7 37.4x 31.8x 27.3x 17% 94.2x 75.7x 61.7x 24% 101.0x 80.7x 65.3x 24% 104.8x 87.0x 70.8x 22%
Car Trade* 0.5 0.4 5.7x 4.8x 4.0x 19% 26.3x 18.1x 13.2x 41% 35.3x 22.1x 15.4x 51% 34.6x 25.8x 19.6x 33%
Paytm* 4.1 3.2 3.4x 2.7x 2.3x 22% nm nm 59.1x nm nm nm nm nm nm nm 168.5x nm
Easemytrip* 0.9 0.8 10.4x 9.4x 8.0x 14% 25.1x 21.8x 17.5x 20% 25.8x 22.5x 18.0x 20% 36.9x 31.2x 23.9x 24%
Makemytrip 10.8 10.3 11.1x 9.4x 7.8x 19% 63.8x 52.3x 38.1x 29% 74.4x 48.7x 36.0x 44% 64.4x 55.0x 41.2x 25%
Affle 2.8 2.6 10.0x 8.4x 7.0x 19% 49.0x 39.9x 32.7x 22% 60.0x 48.7x 40.2x 22% 62.2x 50.4x 41.3x 23%
Nazara* 0.9 0.7 4.4x 3.6x 3.0x 22% 33.2x 24.7x 20.6x 27% 59.0x 41.6x 31.8x 36% 65.7x 53.8x 44.0x 22%
Indiamart* 2.2 1.9 11.6x 10.2x 9.0x 14% nm 35.2x 30.8x nm 38.0x 33.1x 29.2x 14% 43.0x 37.7x 32.9x 14%
IRCTC 8.8 8.6 15.0x 13.0x 11.8x 13% 42.0x 33.3x 29.6x 19% 44.7x 35.4x 31.4x 19% 54.9x 43.7x 38.3x 20%
Just Dial* 1.3 0.7 5.3x 4.6x 4.1x 13% 18.2x 15.8x 13.7x 15% 21.1x 18.1x 15.4x 17% 19.6x 19.4x 17.0x 8%
Global Beauty and Fashion (GBF)
Etsy 6.4 7.7 2.8x 2.6x 2.5x 5% 10.0x 9.6x 8.7x 7% 21.3x 17.9x 16.2x 15% 13.2x 11.9x 11.5x 7%
Ulta Beauty 17.7 19.1 1.7x 1.6x 1.5x 5% 10.3x 9.9x 9.3x 5% 12.1x 11.6x 11.0x 5% 14.6x 13.6x 12.5x 8%
Stitch Fix 0.4 0.3 0.3x 0.2x 0.2x 7% 12.1x 6.8x 6.1x 41% nm nm nm nm nm nm nm nm
THG 1.0 1.8 0.7x 0.6x 0.6x 7% 9.3x 8.1x 6.9x 16% nm nm nm nm nm nm nm nm
Proya Cosmetics 4.8 4.4 2.8x 2.2x 1.9x 21% 15.5x 12.7x 10.6x 21% 16.2x 13.1x 10.9x 22% 22.3x 18.2x 15.1x 22%
Guangdong Marubi 1.2 1.0 2.4x 2.0x 1.6x 21% 17.2x 13.6x 11.0x 25% 15.9x 12.5x 10.2x 25% 22.3x 17.8x 14.5x 24%
Shanghai Jahwa 1.4 1.0 1.0x 0.9x 0.9x 7% 10.5x 9.6x 8.8x 9% 13.6x 11.7x 10.3x 15% 19.8x 17.2x 14.9x 15%
Mean (IR) 8.5x 7.3x 6.5x 15% 47.0x 37.9x 32.2x 19% 69.7x 50.5x 41.0x 25% 74.2x 58.6x 62.8x 21%
Mean (IT) 11.8x 9.9x 8.4x 19% 100.5x 49.0x 37.1x 44% 109.2x 58.6x 39.4x 47% 83.7x 54.8x 52.9x 32%
Mean (GBF) 1.6x 1.5x 1.3x 11% 12.1x 10.0x 8.8x 18% 15.8x 13.4x 11.7x 16% 18.4x 15.7x 13.7x 15%

Source: JM Financial, Bloomberg

Key Risks
 Downside risks: 1) Slower-than-expected tech penetration in India: Slower than expected
tech-enabled transactions growth in India could significantly impact Nykaa’s ability to
quickly scale up and, thereby, report sustainable profits. 2) Sharp rise in competitive
intensity: Nykaa directly competes with several domestic as well as foreign marketplace
platforms, physical retail stores and direct-to-consumer brands. Competition can impact
Nykaa’s business either through technology disruption, exclusive goods and services
offerings, pricing pressure, intense marketing and promotional campaigns, strong
leverage of their own brands strength or through better relationships with suppliers. 3)
Regulatory risks: The Indian government may change its regulations and policies on the
retail industry, e-commerce rules, personal data and social security code. If that happens,
Nykaa may have to bear incremental costs of compliance that may have a direct impact
on its business operations as well as financial positioning. The government has also
launched Open Network for Digital Commerce (ONDC) to dilute the platforms’ strength
though we estimate ONDC to not venture into specialised retails such as BPC anytime
soon. 4) Marginal player in Fashion: Nykaa is the least capitalised player in Fashion where
competition either has deep pockets or massive customer base. Therefore, the company
may have to make substantial investments in building supplier and brand relationships, to
improve brand awareness of its own platform and expand business across new products
and categories. 5) Margin dilution from distribution-led businesses: While we like Nykaa’s
SuperStore business, there could be margin dilution for the company if growth in that
business comes at the cost of growth in Nykaa’s core business.

 Upside risks: 1) Sharp rise in transacting users: Much faster rate than expected tech-
enabled transactions penetration in India could lead to sharp rise in transacting user base
for Nykaa, thereby significantly lifting volume growth. 2) Private brands: Nykaa has
several owned brands that offer higher gross margin. A substantial increase in the mix of
these brands in the overall mix through organic/inorganic expansion could lead to a
significant upside in profitability. 3) Fashion vertical gaining significant share of brands’
digital advertising: While Nykaa generates 6%+ of GMV in BPC Ads income, the same
number for Fashion is lower than 4% currently, though Fashion brands allocate a higher
percentage to advertising expense. If Nykaa does become the go-to platform for online
Fashion purchases in India, we see significant upside from ads income. 4) Value accretion
JM Financial Institutional Securities Limited Page 10
FSN E-Commerce Ventures 28 August 2024

from inorganic expansion: The company continues to look for inorganic expansion
opportunities given its strong balance sheet. Strong revenue and operating synergies from
such expansions could have a positive impact on the profitability trends of the company.

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FSN E-Commerce Ventures 28 August 2024

Financial Tables (Consolidated)

Income Statement (INR mn) Balance Sheet (INR mn)
Y/E March FY23A FY24A FY25E FY26E FY27E Y/E March FY23A FY24A FY25E FY26E FY27E
Net Sales 51,438 63,856 81,413 1,06,386 1,37,349 Shareholders’ Fund 13,780 12,622 14,239 18,010 25,274
Sales Growth 36.3% 24.1% 27.5% 30.7% 29.1% Share Capital 2,852 2,856 2,856 2,856 2,856
Other Operating Income 0 0 0 0 0 Reserves & Surplus 10,928 9,766 11,383 15,154 22,418
Total Revenue 51,438 63,856 81,413 1,06,386 1,37,349 Preference Share Capital 0 0 0 0 0
Cost of Goods Sold/Op. Exp 28,657 36,464 45,889 59,765 77,031 Minority Interest 141 188 386 788 1,487
Personnel Cost 4,917 5,649 6,576 7,708 8,890 Total Loans 4,604 6,804 6,804 6,804 6,804
Other Expenses 15,303 18,282 23,760 30,291 37,733 Def. Tax Liab. / Assets (-) -1,878 -2,690 -2,690 -2,690 -2,690
EBITDA 2,561 3,461 5,188 8,622 13,695 Total - Equity & Liab. 16,647 16,924 18,739 22,912 30,876
EBITDA Margin 5.0% 5.4% 6.4% 8.1% 10.0% Net Fixed Assets 7,297 6,979 7,944 9,637 11,384
EBITDA Growth 56.9% 35.1% 49.9% 66.2% 58.8% Gross Fixed Assets 3,486 4,238 5,431 7,062 8,863
Depn. & Amort. 1,733 2,242 2,453 2,887 3,333 Intangible Assets 1,556 1,715 1,820 2,018 2,122
EBIT 828 1,219 2,734 5,735 10,361 Less: Depn. & Amort. 1,173 1,881 2,679 3,612 4,680
Other Income -444 -529 -530 -422 -72 Capital WIP 3,428 2,906 3,372 4,169 5,079
Finance Cost 0 0 0 0 0 Investments 4,100 3,817 3,817 3,817 3,817
PBT before Excep. & Forex 384 690 2,205 5,313 10,289 Current Assets 16,225 20,520 24,013 32,107 45,314
Excep. & Forex Inc./Loss(-) 0 0 0 0 0 Inventories 10,051 11,920 13,996 17,573 22,017
PBT 384 690 2,205 5,313 10,289 Sundry Debtors 1,635 2,416 3,024 3,938 5,065
Taxes 136 253 556 1,339 2,593 Cash & Bank Balances 414 758 738 2,947 8,983
Extraordinary Inc./Loss(-) 0 0 0 0 0 Loans & Advances 0 0 0 0 0
Assoc. Profit/Min. Int.(-) 17 75 198 401 699 Other Current Assets 4,125 5,426 6,254 7,650 9,249
Reported Net Profit 232 362 1,451 3,573 6,997 Current Liab. & Prov. 10,975 14,392 17,035 22,650 29,639
Adjusted Net Profit 232 362 1,451 3,573 6,997 Current Liabilities 6,035 6,758 9,094 12,285 16,223
Net Margin 0.5% 0.6% 1.8% 3.4% 5.1% Provisions & Others 4,939 7,634 7,942 10,365 13,416
Diluted Share Cap. (mn) 2,873.3 2,873.3 2,873.3 2,873.3 2,873.3 Net Current Assets 5,251 6,128 6,977 9,457 15,675
Diluted EPS (INR) 0.1 0.1 0.5 1.2 2.4 Total – Assets 16,647 16,924 18,739 22,912 30,876
Diluted EPS Growth -90.4% 56.2% 301.0% 146.3% 95.8% Source: Company, JM Financial
Total Dividend + Tax 0 0 0 0 0
Dividend Per Share (INR) 0.0 0.0 0.0 0.0 0.0
Source: Company, JM Financial

Cash Flow Statement (INR mn)

Dupont Analysis
Y/E March FY23A FY24A FY25E FY26E FY27E
Y/E March FY23A FY24A FY25E FY26E FY27E
Profit before Tax 384 690 2,205 5,313 10,289
Net Margin 0.5% 0.6% 1.8% 3.4% 5.1%
Depn. & Amort. 1,733 2,242 2,453 2,887 3,333
Asset Turnover (x) 2.5 2.9 3.4 3.9 4.0
Net Interest Exp. / Inc. (-) 527 631 530 422 72
Leverage Factor (x) 1.5 1.7 1.8 1.7 1.6
Inc (-) / Dec in WCap. -3,290 -2,513 -1,437 -1,042 -1,118
Others 195 264 190 223 258 RoE 1.7% 2.7% 10.8% 22.2% 32.3%

Taxes Paid -951 -1,312 -556 -1,339 -2,593

Operating Cash Flow -1,402 3 3,386 6,465 10,242 Key Ratios
Capex -2,082 -1,107 -1,571 -2,121 -2,202 Y/E March FY23A FY24A FY25E FY26E FY27E
Free Cash Flow -3,484 -1,105 1,815 4,344 8,040 BV/Share (INR) 4.8 4.4 5.0 6.3 8.8
Inc (-) / Dec in Investments 3,713 788 0 0 0 ROIC 4.6% 5.3% 12.8% 24.0% 39.1%
Others -236 218 315 444 838 ROE 1.7% 2.7% 10.6% 21.4% 30.7%
Investing Cash Flow 1,396 -101 -1,256 -1,677 -1,364 Net Debt/Equity (x) 0.0 0.2 0.2 0.0 -0.2
Inc / Dec (-) in Capital 288 172 -25 -25 10 P/E (x) 2,802.5 1,794.5 447.6 181.7 92.8
Dividend + Tax thereon 0 0 0 0 0 P/B (x) 46.8 51.3 45.5 35.9 25.6
Inc / Dec (-) in Loans 95 721 -1,567 -2,025 -2,359 EV/EBITDA (x) 252.8 187.7 125.3 75.2 46.9
Others -334 -451 -558 -529 -493 EV/Sales (x) 12.6 10.2 8.0 6.1 4.7
Financing Cash Flow 49 443 -2,150 -2,579 -2,842 Debtor days 12 14 14 14 13
Inc / Dec (-) in Cash 42 344 -20 2,209 6,036 Inventory days 71 68 63 60 59
Opening Cash Balance 372 414 758 738 2,947 Creditor days 20 23 27 30 32
Closing Cash Balance 414 758 738 2,947 8,983 Source: Company, JM Financial
Source: Company, JM Financial

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FSN E-Commerce Ventures 28 August 2024

History of Recommendation and Target Price Recommendation History

Date Recommendation Target Price % Chg.

3-Feb-22 Buy 414

10-Feb-22 Buy 354 -14.5

22-Feb-22 Buy 354 0.0

29-May-22 Buy 289 -18.4

24-Jun-22 Buy 289 0.0

6-Aug-22 Buy 292 1.2

8-Sep-22 Buy 297 1.7

18-Oct-22 Buy 297 0.0

2-Nov-22 Buy 281 -5.6

14-Feb-23 Buy 250 -10.9

26-Apr-23 Buy 230 -8.0

25-May-23 Buy 210 -8.7

17-Jun-23 Buy 210 0.0

12-Aug-23 Buy 210 0.0

4-Sep-23 Buy 210 0.0

6-Nov-23 Buy 210 0.0

6-Feb-24 Buy 210 0.0

23-May-24 Buy 220 4.8

18-Jun-24 Buy 230 4.5

14-Aug-24 Buy 230 0.0

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FSN E-Commerce Ventures 28 August 2024

APPENDIX I

JM Financial Inst itut ional Secur ities Lim ited

Corporate Identity Number: U67100MH2017PLC296081
Member of BSE Ltd. and National Stock Exchange of India Ltd.
SEBI Registration Nos.: Stock Broker - INZ000163434, Research Analyst - INH000000610
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India.
Board: +91 22 6630 3030 | Fax: +91 22 6630 3488 | Email: [email protected] | www.jmfl.com
Compliance Officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: [email protected]
Grievance officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: [email protected]

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Definition of ratings
Rating Meaning
Buy Total expected returns of more than 10% for stocks with market capitalisation in excess of INR 200 billion and REITs* and more than
15% for all other stocks, over the next twelve months. Total expected return includes dividend yields.
Hold Price expected to move in the range of 10% downside to 10% upside from the current market price for stocks with market
capitalisation in excess of INR 200 billion and REITs* and in the range of 10% downside to 15% upside from the current market price
for all other stocks, over the next twelve months.
Sell Price expected to move downwards by more than 10% from the current market price over the next twelve months.
* REITs refers to Real Estate Investment Trusts.
Research Analyst(s) Certification
The Research Analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that:
All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and
No part of his or her or their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research
report.
Important Disclosures
This research report has been prepared by JM Financial Institutional Securities Limited (JM Financial Institutional Securities) to provide information about the
company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its associates solely for the purpose of information of the select
recipient of this report. This report and/or any part thereof, may not be duplicated in any form and/or reproduced or redistributed without the prior written
consent of JM Financial Institutional Securities. This report has been prepared independent of the companies covered herein.
JM Financial Institutional Securities is registered with the Securities and Exchange Board of India (SEBI) as a Research Analyst and a Stock Broker having trading
memberships of the BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). No material disciplinary action has been taken by SEBI against JM Financial
Institutional Securities in the past two financial years which may impact the investment decision making of the investor. Registration granted by SEBI and
certification from the National Institute of Securities Market (NISM) in no way guarantee performance of JM Financial Institutional Securities or provide any
assurance of returns to investors.
JM Financial Institutional Securities renders stock broking services primarily to institutional investors and provides the research services to its institutional
clients/investors. JM Financial Institutional Securities and its associates are part of a multi-service, integrated investment banking, investment management,
brokerage and financing group. JM Financial Institutional Securities and/or its associates might have provided or may provide services in respect of managing
offerings of securities, corporate finance, investment banking, mergers & acquisitions, broking, financing or any other advisory services to the company(ies)
covered herein. JM Financial Institutional Securities and/or its associates might have received during the past twelve months or may receive compensation from
the company(ies) mentioned in this report for rendering any of the above services.
JM Financial Institutional Securities and/or its associates, their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell
the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) covered under this report or (c) act as an advisor or lender/borrower to,
or may have any financial interest in, such company(ies) or (d) considering the nature of business/activities that JM Financial Institutional Securities is engaged in,
it may have potential conflict of interest at the time of publication of this report on the subject company(ies).
Neither JM Financial Institutional Securities nor its associates or the Research Analyst(s) named in this report or his/her relatives individually own one per cent or
more securities of the company(ies) covered under this report, at the relevant date as specified in the SEBI (Research Analysts) Regulations, 2014.
The Research Analyst(s) principally responsible for the preparation of this research report and their immediate relatives are prohibited from buying or selling debt
or equity securities, including but not limited to any option, right, warrant, future, long or short position issued by company(ies) covered under this report. The
Research Analyst(s) principally responsible for the preparation of this research report or their immediate relatives (as defined under SEBI (Research Analysts)
Regulations, 2014); (a) do not have any financial interest in the company(ies) covered under this report or (b) did not receive any compensation from the
company(ies) covered under this report, or from any third party, in connection with this report or (c) do not have any other material conflict of interest at the time
of publication of this report. Research Analyst(s) are not serving as an officer, director or employee of the company(ies) covered under this report.

JM Financial Institutional Securities Limited Page 14

FSN E-Commerce Ventures 28 August 2024

While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities, markets or
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