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.

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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.

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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.

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Posted In: EquitiesPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasNykaa