Stock in Focus: FSN E-Commerce Ventures Limited is the parent company of online and offline fashion retailer Nykaa. Today, the company's stock has seen a rise. Today, the stock rose more than 4% on January 6 to reach Rs 175.26 per share.

This growth was seen after the company released its December quarter business update on January 5. The company said that its net earnings have increased to more than "mid-twenties". The demand for online fashion remains soft. Nykaa has expressed confidence about its long-term opportunities.

What was the business update? According to the company, the increase in earnings is expected to be higher than the consolidated gross merchandise value (GMV) increase. Nykaa's beauty segment has performed better than before in this quarter. Due to this, the increase in net earnings is likely to be more than "mid-twenties". At the same time, GMV growth is likely to be in the "low thirties". This indicates strong momentum in all of Nykaa's beauty businesses–e-commerce platform, retail stores, owned brands and eB2B distribution. Services in over 1,100 cities Nykaa's eB2B distribution business, "Superstore by Nykaa," now contributes 8% to the beauty business's GMV, up from 7% last year. The business now serves 2.6 lakh retailers in over 1,100 cities. Net earnings of Nykaa's fashion division are expected to be around 20%, while net selling value (NSV) growth could be in the "low to mid-teens," indicating continued strong growth in content, marketing, and service-based earnings. Nykaa's performance has boosted investor confidence, leading to a gain in the company's shares.