Why Nykaa Shares Are Shooting Up Today

Nykaa’s share price continued to make gains for the fourth straight session on Monday after the company posted its business update for the quarter that ended in March.

What Happened: In a statement, the omnichannel retailer said that it anticipates revenue growth in the “high twenties” for the January-March quarter compared to the same period last year. The company reported growth in Gross Merchandise Value (GMV) in the “early thirties” and expects Net Sales Value (NSV) to grow by over 25% year-on-year.

“We witnessed strong momentum across key drivers of customer acquisition, platform conversion and user-level growth,” the beauty and fashion major added in the statement.

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In the Beauty and Personal Care segment, Nykaa forecasts GMV growth of approximately 30% year-on-year, with NSV growth in the “mid-twenties,” outpacing industry growth. Similarly, Nykaa Fashion expects GMV growth in the “high twenties” and NSV growth in the “mid-twenties,” despite muted industry growth in the Fashion segment.

The “others” vertical, primarily comprising Superstore by Nykaa, an eB2B platform, is expected to achieve GMV growth in the “mid-sixties” with NSV growth of around 80% year-on-year.

Price Action: Nykaa’s share price was up 4.66% to trade at ₹176.30 shortly after market open on Monday.

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