Shares of FSN E-Commerce, the company that operates Nykaa, fell 11% in Monday’s trade to reach a low of Rs 130 before recovering slightly to close at Rs 134.05. The decline in Nykaa’s shares follows its June quarter results, which were slightly below market expectations.
- Nykaa reported a consolidated net profit of Rs 5.4 crore in the June quarter, an 8% increase compared to the same period last year. However, profit attributable to equity shareholders declined 27% YoY to Rs 3.3 crore.
- FSN E-commerce’s revenue for the first quarter of the current financial year increased by 24% to Rs 1422 crore, compared to Rs 1148 crore in the same period last year.
Experts have mixed opinions on Nykaa’s future growth potential:
- Nomura India expects Nykaa to deliver further growth compared to the industry and has a ‘neutral’ rating on the stock with a revised target price of Rs 163.
- Nuwama Institutional Equities has revised its target price for Nykaa from Rs 186 to Rs 180 due to lower growth expectations for the fashion division.
- JM Financial reiterates a ‘Buy’ rating on Nykaa with a target price of Rs 210, citing strong average order value improvement.
Nykaa was listed in the stock market in November 2021 at an issue price of Rs 1125. However, the stock has lost 88% of its value since then.
News Summary:
👉Shares of FSN E-Commerce, the parent company of Nykaa, fell 11% in Monday’s trade but recovered slightly to close at Rs 134.05.
👉Nykaa’s June quarter results showed a consolidated net profit of Rs 5.4 crore, an 8% increase YoY. However, profit attributable to equity shareholders declined 27% to Rs 3.3 crore.
👉FSN E-commerce’s revenue for the first quarter of the current financial year increased by 24% to Rs 1422 crore.
👉Analysts have mixed opinions on Nykaa’s future growth potential, with Nomura India expecting further growth and Nuwama Institutional Equities revising their target price due to lower growth expectations in the fashion division.
👉Nykaa’s stock has lost 88% of its value since its listing in November 2021 at an issue price of Rs 1125.
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