Nykaa Shares: Nykaa Share Price NSE BSE India
In the December quarter, Nykaa Shares net profit increased 106 per cent year-on-year to Rs 17.5 crore, while its revenue increased 22 per cent to Rs 1,788.8 crore. We are continuing to improve profits, the company said in a statement. EBITDA margin for the quarter increased to 5.5 percent.
Nykaa Shares parent company (FSN E-Commerce Ventures) saw a rise of about 6 percent today on February 7. However, this momentum could not be sustained. At present this stock is trading at a price of Rs 155.80, down 2.06 percent. The company has released strong results in the third quarter of the current financial year. The company has earned huge profits due to strong demand during the festival and wedding season. After this, fluctuations have been seen in the shares of the company today.
Highlights
How were Nykaa’s Q3 Results
Nykaa Shares net profit rose 106 per cent year-on-year to Rs 17.5 crore in the December quarter, while its revenue grew 22 per cent to Rs 1,788.8 crore. “We continue to improve profitability. EBITDA margin for the quarter improved to 5.5 percent,” the company said in a statement. The Mumbai-based company’s EBITDA margin stood at 5.3 percent in the same quarter last year.
The company’s results are largely in line with what Nykaa had forecast last month. The beauty and personal care company’s gross merchandise value (GMV) grew 29 per cent year-on-year to Rs 3,619.4 crore, with all divisions contributing to the company’s growth. The fashion segment surprised with its growth and profitability in the quarter. Brokerage Jefferies said growth remains a priority despite challenges, which could keep contribution margins limited in the short term.
Expert’s Opinion about Nykaa
According to brokerage Morgan Stanley, improvement in profitability in Nykaa’s fashion and eB2B segments is a positive development. The brokerage has given ‘overweight’ rating to Nykaa with a target price of Rs 190 per share. Jefferies said Nykaa’s EBITDA margin is expected to increase in the future. It has maintained ‘Buy’ call on Nykaa with a target price of Rs 210 per share. Nykaa’s EBITDA margin was slightly lower than expected in the December FY24 quarter due to lower advertising revenue and ESOPs as well as Middle East store expenses. Despite these challenges, HSBC maintained ‘Buy’ rating on Nykaa with a target price of Rs 240 per share.
Brokerages have lowered EBITDA estimates for FSN E-Commerce Ventures Ltd., Nykaa’s parent company, due to weaker ad income despite strong performance in fashion and B2B sectors. Third-quarter revenue met expectations, but profits fell short. Net profit rose 123% YoY to Rs 17.4 crore, below analysts’ consensus of Rs 32.55 crore. Revenue grew 22% YoY, but gross margins declined 90 bps due to higher discounting and lower ad income. Contribution margin fell 320 bps due to increased marketing spends. HSBC Global Research foresees strong growth in the beauty and personal care e-commerce segment.
Nykaa Share Price Target 2024
Nykaa Shares Price Target 2024 could be expected Rs 250. Trading at Rs 155.80 on the BSE, the company operates in e-commerce and is part of the S&P BSE 200 index, with a market capitalization of Rs 44,908.52 crore as of February 7, according to the BSE website.
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