Shares of Nykaa listed as FSN E-Commerce Ventures Limited went up over 4 per cent on the day after the fashion retailer reported a 33.4 per cent increase in net profit in the June quarter. Nykaa shares gained 4.3 per cent to Rs 1,473 in a single day. On the BSE, the price was 75. The stock was 3.07 per cent higher at Rs 1,473 earlier in the day. The previous close of Rs 1,412 was 35 against it. Nykaa's stock is trading lower than the 50 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has dropped 34.12 per cent this year and 18.21 per cent in a month.
It touched a 52 week high of Rs 2,574 on November 26, 2021 and hit a 52 week low of Rs 1208 on the BSE.
The firm has changed hands of 0.31 lakh shares, which is a turnover of Rs 4.33 crore. The firm's market cap rose to 67,158 crore on the BSE.
Revenue from operations rose 40.5 per cent to Rs 1,148 in the quarter of Q4 FY22, a 47.6 per cent increase from Rs 8.56 crore in March 2022 quarter. The quarter last fiscal saw 42 crore in the quarter as opposed to 816.991 crore in the same quarter.
Nykaa's gross merchandise volume GMV grew 47 per cent YoY to Rs 2,155 during the quarter. 8 crore.
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Here's a look at what brokerages said about the outlook of the stock after Q1 earnings.
Superstore by Nykaa is an inventory and distribution-driven business and continues to grow with 112 stores in 52 cities and 30 fulfilment centres in 14 cities. We are appreciative of channel expansion being pursued by Nykaa Fashion with online presence across Nykaa, D 2 C and 3 P platforms, supplemented by multi-brand outlets and GT across offline trade. The BUY rating has a June 23 target price of Rs 1,750 24% upside as we accommodate faster than expected revenue growth, despite relatively lower margins, said the brokerage.
After Q 1 earnings were announced, ICICI Securities has assigned a hold call on the stock.
The competition will likely intensify from both vertical and horizontal peers. While we expect BPC revenues to grow, we believe Nykaa's journey could be different - it will need to go more mainstream to drive the growth tougher decisions about brand stretch along the way Maintain HOLD with a target price of Rs 1,400, said ICICI Securities.
International brokerage Jefferies is bullish about the stock.
It has given a buy call with a target price of Rs 1,650. The firm reported strong GMV growth across BPC Fashion, which was well above estimates. Staff costs resulted in an earning miss, leading to higher costs. Even for initiatives beyond BPC, management sounded confident in 'profitable' growth, according to the brokerage.