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Check Before You Invest : FSN E-Commerce Ventures Ltd

BSE: 543384 NSE: NYKAA ISIN: INE388Y01029
  |   Sector:  Retail   |   Industry:  e-Commerce

Snapshot

Q.1 Which industry/sub-sector does FSN E-Commerce Ventures Ltd belong to?
FSN E-Commerce Ventures Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.
Q.2 Is FSN E-Commerce Ventures Ltd a good quality company?
FSN E-Commerce Ventures Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is FSN E-Commerce Ventures Ltd undervalued or overvalued?
FSN E-Commerce Ventures Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 356.79 -
Price to Book 61.69 43.55
Price to Sales 8.58 8.13
EV to EBITDA 104.28 125.16
Q.4 Is FSN E-Commerce Ventures Ltd a good buy now?
FSN E-Commerce Ventures Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd revenue growth is 26.1% for FY-2026, which is below its 5-year CAGR of 32.64%, indicating slower growth.

Q.2 Gross Profit margin of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.7% for FY-2026, which is above its 5-year median of 4.6%, indicating increasing margins.

Q.3 Operating Profit Margin of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.51% for FY-2026, which is above its 5-year median of 5.43% indicating increasing margins.

Q.4 Net Profit Margin of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Net Profit Margin is 2.03% for FY-2026, is above its 5-year median of 0.93%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.7 4.6
Operating Profit Margin (%) 7.51 5.43
Net Profit Margin (%) 2.03 0.93

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Return on Asset is 5.06%, which is above its 5-year historical median of 2.15%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Return on capital employed is 20.15% for FY-2026, which is above its 5-year historical median of 8.07%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Return on equity is 15.3% for FY-2026, which is above its 5-year historical median of 4.58%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Cash conversion cycle is 39 days, below its 5-year historical median of 46 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.49 2.17
ROE (%) 15.3 4.58
ROCE (%) 20.15 8.07
Cash Conversion Cycle 39 days 46 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Debt-to-Equity ratio is 0.53, which is above the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of FSN E-Commerce Ventures Ltd?
FSN E-Commerce Ventures Ltd Debt to cash flow from operations is 1.16, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of FSN E-Commerce Ventures Ltd?

Q.1 Promoter shareholding and pledge status of FSN E-Commerce Ventures Ltd?
Promoters hold 52.07% of the FSN E-Commerce Ventures Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does FSN E-Commerce Ventures Ltd performance compare with that of its Peers?

Q.1 Revenue growth of FSN E-Commerce Ventures Ltd vs industry peers?
FSN E-Commerce Ventures Ltd revenue CAGR is 32.64%, compared to the industry median CAGR of 32.64%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 26.1 32.6
Gross Profit Growth (%) 69.5 37.1
Operating Profit Growth (%) 58.9 36.7
Net Profit Growth (%) 175.7 26.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.49 1.86
ROE (%) 15.3 -
ROCE (%) 20.15 -19.83
Cash Conversion Cycle (days) 38.73 -20

Valuation & price assessment

Q.1 Stock return of FSN E-Commerce Ventures Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 32.32% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 32.3% 28.2%
Q.2 Valuation ratios of FSN E-Commerce Ventures Ltd vs historical?
The current P/E ratio of 356.79 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 356.79 - 28.26
Price to Book 61.69 43.55 4.47
Price to Sales 8.58 8.13 6.72
EV to EBITDA 104.28 125.16 16.76

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