Nykaa Shares Give Investors Jitters Ahead Of Q3 Results Today

Shares of Nykaa traded 0.74%  lower at ₹153.50 as the markets opened on Monday.

What Happened: The company is scheduled to release its Q3FY23 results today. It has been on an uptrend in the run-up to the results. The shares of the omnichannel retailer surged over 10% last week. 

The company is expected to post strong numbers driven by the festive season demand in the December quarter. Analysts at Kotak Institutional Equities expect the beauty and fashion retailer to post a 39% year-over-year growth in the third quarter. It expects the company's beauty and personal care segment to grow 35% YoY and the fashion segment to grow 27% YoY.

Brokerage firm JM Financial also sees the company posting good numbers this quarter on the back of the festive demand. It sees the BPC segment to continue growing but expects growth in the fashion segment to be muted due to increased competition.

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However, brokerage firm Jefferies cut down its price target for the Falguni Nayar-led startup to ₹200 from ₹270 but maintained its ‘buy’ rating for the stock. 

The firm sees increased competition and a reduction in the company’s ad revenue in the future. It also worries about demand slowing down in the near term due to macroeconomic factors. 

The shares of the company hit a fresh 52-week low last month has staged quite a comeback since then. It remains to be seen how the Q3 numbers will impact the stock.

Price Action: Nykaa shares dropped around 1% to reach Monday’s intraday low of ₹152.50 as markets opened on Monday.

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