Nykaa Shares Fly To New Highs As Brokerage Expects Over 40% Upside

Nykaa‘s share price was flying on Tuesday morning going up over 5% to hit a new 52-week high of ₹186.80.

What Happened: Today’s jump comes as HSBC maintained its “buy” rating for the stock and a price target of ₹250. The target reflects a 41% upside from the stock’s last closing price of ₹176.90.

Talking about the company’s quarterly business update, the analysts said that the beauty and personal care unit of Nykaa has maintained a robust net sales value (NSV) despite challenging demand conditions. As per the analysts, NSV for the fashion vertical also remained strong despite a relatively weaker festive demand.

See Also: Is Sony Pulling Out Of The $10B Mega Merger With Zee Entertainment?

The omnichannel retailer is optimistic about its performance for the October-December quarter. The company anticipates robust growth in its BPC vertical, with the gross merchandise value (GMV) expected to achieve growth in the mid-20s on a year-on-year basis. The net sales value (NSV) for the BPC segment is projected to grow around 20% during the same period.

In the fashion vertical, Nykaa expects GMV growth of approximately 40%. The net sales value in the fashion segment is expected to show strong growth in the low thirties.

Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

You have successfully subscribed.

At the consolidated level, Nykaa is forecasting a mid-twenties growth in net sales value (NSV), reflecting the overall performance across its diverse business verticals. Additionally, the company expects its consolidated revenue to grow in the low twenties on a year-on-year basis for the October-December quarter.

Price Action: Nykaa’s share price was up 3.48% to trade at ₹183.05 on Tuesday morning.

Read Next: Trouble In Paradise: Maldives Row Sees Many Cancel Tickets, EaseMyTrip Suspends Bookings

Posted In: EquitiesPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasNykaa