Bank of America has downgraded FSN E-Commerce Ventures Ltd (Nykaa) to 'Underperform' from Neutral, reducing its target price from Rs 225 to Rs 150, indicating a potential 12% downside due to slower margin growth and challenges in the quick commerce segment. As of 9:30 AM, Nykaa's shares were down 1.4% at Rs 167, reflecting a year-to-date decline of over 1%, underperforming the Nifty 50's 7.5% rise. The brokerage anticipates that competition from global players like Shein and subdued growth in the apparel industry will further pressure Nykaa's revenue.
