Friday, February 23, 2024

Nykaa: Shares are available at huge discount, if you buy now you can get huge profits

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Nykaa Share Price: Shares of Nykaa brand operator FSN E-Commerce Ventures rose by 6 percent in intraday today and reached the price of Rs 170 (Nykaa Stock Price). The company’s shares closed at Rs 160 on Tuesday. The company had released its quarterly results on Tuesday, which the market has liked. Nykaa brand operator’s profit has increased by 106 percent on an annual basis to Rs 17.5 crore in the December quarter. The company had made a profit of Rs 8.5 crore in the same quarter a year ago. After the results, most of the brokerage houses are looking positive about the stock. At present this share is at about 63 percent discount from its all-time high of Rs 429.

Brokerage ratings and targets

HSBC

Rating: Buy
Target price: Rs 240

elara

Rating: Accumulate
Target price: Rs 185

Jefferies

Rating: Buy
Target price: Rs 210

morgan stanley

Rating: Overweight
Target price: Rs 190

JM Financial

Rating: Buy
Target price: Rs 210

Nuvama

Rating: Buy
Target price: Rs 189

What does the brokerage house say?

According to brokerage house Nuvama, Nykaa has reported a stable quarter with sustainable growth after Q2FY24, with BPC and Fashion registering NSV growth of 20 per cent and 31 per cent. Nykaa’s top line was in line with estimates, gross EBITDA margin of 5.5 per cent was also in line with estimates and saw an improvement of 20 bps YoY. ESOP and GCC expansion had an impact of 60 billion points, which will continue. According to the brokerage firm, the company is focusing on growth, which is big positive. The brokerage maintained ‘Buy’ rating on the stock and increased the target price from Rs 187 to Rs 189.

According to brokerage house Morgan Stanley, improvement in profitability in Nykaa’s fashion and EB2B segments is a positive growth. The brokerage has given ‘overweight’ rating to the stock with a target price of Rs 190. Brokerage house Jefferies said that Nykaa’s operating leverage is expected to increase the company’s EBITDA margin in the future. The brokerage has maintained ‘Buy’ rating on Nykaa with a target of Rs 210 on the stock.

How were the results of Nykaa?

The profit of Nykaa brand operator FSN E-Commerce Ventures has increased by 106 percent on an annual basis in the December quarter to Rs 17.5 crore. The company had made a profit of Rs 8.5 crore in the same quarter a year ago. Whereas in the second quarter of the current financial (Q2FY24) the company had made a profit of Rs 7.8 crore. The company’s revenue has increased by about 22 percent to Rs 1788.8 crore, which was Rs 1462.83 crore in the same quarter a year ago. Gross merchandise value has increased by 29 percent over the year-ago period. EBITDA for the quarter grew 26 per cent to Rs 98.8 crore, while margins expanded 20 bps to 5.5 per cent. Nykaa’s GMV increased by 29 percent on annual basis to Rs 3619.4 crore. GMV in beauty and personal care division increased by 25 percent to Rs 2369.7 crore.

(Disclaimer: The advice to invest in stocks has been given by the brokerage house. These are not the personal views of digitnews. There are risks in the market, so take expert opinion before investing.)

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