Amid a global sell-off, the shares of Nykaa listed as FSN E-Commerce Ventures Limited fell 13 per cent to a new all-time low of Rs 1740.05 on the BSE.
The company's market cap fell below the Rs 85,000 crore mark. The stock has fallen over 32 per cent from its all-time high. It touched a new all-time high of Rs 2,574 on November 26, 2021.
The stock was traded at a premium of 79 per cent to the issue price, marking a strong listing for the online beauty retailer. The company made its market debut at Rs 2,001 per share on the BSE against the IPO issue price of Rs 1,125.
Abhay Agarwal, founder, Piper Serica said that the sharp fall in Tech and Internet stocks globally is putting pressure on Indian Internet stocks and the fall in the price of Nykaa is the result of that, as it is a poster child of Indian e-commerce.
The global investors are in a risk-off mood and are exacerbated by the fall in cryptocurrencies and nervousness around the Fed meeting over the next couple of days. He said that the stock of Nykaa will remain under pressure in the short term and that long-term investors should wait before bottom fishing.
The domestic market is downtrending, taking cues from international markets. Most of the stocks are in correction mode. Nykaa may see a further correction of 5 -- 8% around Rs 1500 levels in the next trading sessions. Ravi Singh, Vice President and Head of Research-ShareIndia, said that long-term investors may take fresh entry at lower levels for better gains.
We suggest retail investors not to catch the falling knife at this point, as there may be more volatility as the next week is going to be on budget i.e February 1, 2022. Markets are down due to global clues and not-so good results by companies in Q 3 FY 22 as of now, said Angel One Research Analyst, Yash Gupta Equity Research Analyst, Angel One Ltd.
In the year-ago period, it had a profit of 27 crore.
Revenue from operations increased by 47 per cent year-on-year YoY to Rs 885.3 crore from Rs 603.8 crore in the corresponding quarter of last year.
The initial public offering IPO of Nykaa's parent FSN E-Commerce Ventures Ltd was subscribed more than 82 times at the end of the final day of bidding on November 1.