Shares of the fashion and beauty retailer Nykaa jumped over 3.5% to reach Monday's intraday high of ₹130.80. The stock, like several of its peers in the new-age tech companies category, has been seeing volatility. Just last week, the stock hit its 52-week low of ₹120.70 before bouncing back over 7% the day after.
The share saw renewed interest from institutional investors and mutual funds in December after it posted strong second-quarter numbers.
Foreign institutional investors (FIIs) increased their position in the omnichannel retailer from around 6% to 11.1%. Domestic Institutional Investors followed suit and more than doubled their stock holdings from around 3% to 6.4%. Mutual fund holdings in the stock also doubled to 4.1% in December.
Nykaa saw a drop in interest from retail investors as their holdings dropped from 38.6% to 30% in December. As the stock goes through an almost 30% valuation correction in three months, it has received a positive outlook from several brokerages such as Kotak Institutional Equities and ICICI Securities, for the time being.
Kotak has a price target of ₹230 on the stock, while ICICI Securities’ target is ₹145.
The company was profitable before it went public and still remains profitable — a fact that sets it apart from a lot of its peers in the digitally grown startup category. Market estimates remain optimistic that Nykaa's profitability trend will continue as the company posts its Q3 numbers.
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
Price Action: Nykaa was up 3.5% to trade at ₹130.30 in the early hours of trading on Monday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.