Shares of FSN E-Commerce Ventures Ltd., which operates the online fashion retailer Nykaa, rose by around 3 percent on Monday, despite mixed analyst commentary on the company's business outlook for the future.

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The company laid out some growth plans for the future, seeking a total addressable market worth $180 billion by 2027 on Friday. It also said that it is maintaining its growth ahead of the market.

Brokerage firm Jefferies believes that the premiumisation trend plays well in favour of Nykaa given its platform positioning. The company's outlook on profitability is also positive led by better customer retention, own labels etc.

"A strong tech backbone is core to its success and the investments continue to augment tech capabilities," Jefferies said. The brokerage has a buy recommendation on the stock with a price target of Rs 200, which implies a potential upside of 38 percent on the stock.

Brokerage Jefferies, while assigning a ‘Buy’ recommendation on the stock, stated that the management sounded positive on its industry outlook and Nykaa's strong "right to win" across business verticals.

India's online beauty and personal care segment and the fashion industry is expected to have a compounded annual growth rate of 29 percent and 27 percent respectively over financial year 2022-2030, according to brokerage firm Nomura.

The brokerage said that Nykaa's current valuations at 5.1 times financial year 2025 EV/Sales are attractive, given its strong growth outlook driven by growth in high-income and upper middle-class households. Nomura's buy recommendation on Nykaa comes with a price target of Rs 183.

On the other hand, Macquarie has an underperform rating on Nykaa with a price target of Rs 115. The firm said that the rating is such because there is no tangible medium-term growth and profitability targets along with concerns of capital-intensive growth given the rising competition.

Shares of Nykaa are trading 3.5 percent higher at Rs 149.35.