Nykaa parent FSN E-Commerce Ventures share price fell 1% and then jumped as high as 1.56% from yesterday’s close to Rs 127 today despite the company’s net profit tanking 71.8% on-year to Rs 2.41 crore in Q4FY23. Nykaa stock has gained 6.6% in the last one month while it has tanked over 45% in the last one year. The cosmetic company’s revenue from operations came in at Rs 1301.72 crore, up 33.7% as against Rs 973.32 crore in the corresponding quarter of the previous year.
Nykaa stock rating: Should you buy, sell or hold Nykaa stock? Check target prices
Kotak: Buy – Fair Value: Rs 210 (65.3% upside)
“The BPC business is on a strong footing, with healthy margin improvement as well as steady traffic growth. The fashion business may need more time to achieve EBITDA break-even, as envisaged earlier. We tweak FY2024-25 EPS by 2-4% and retain BUY with a revised FV of Rs 210 (Rs215 earlier),” said analysts at Kotak Institutional Equities.
HDFC Securities: Reduce – Target Price: Rs 120 (5.5% downside)
“Our thesis remained on track in FY23 as (1) BPC AUTC continues to moderate, and (2) ad income as % of revenue dropped ~100bps YoY (HSIE). We’ve marginally cut our FY24/25 EBITDA estimates by 1-2% and maintained our REDUCE rating with a target price of Rs 120/sh (implying 70x Jun-25 EV/EBITDA),” said analysts at HDFC Securities.
Nuvama: Buy – Target Price: Rs 186 (46.4% upside)
“The realignment of expenses despite lower growth drives a moderate increase in EBITDA estimates with a 3%/7% increase in FY24/FY25 EBITDA. However, higher working capital assumptions drive down our DCF-derived target price to Rs 186. Nykaa is trading at 4.3x FY25E EV/sales (offline retail segment peers: 4.6x),” said analysts at Nuvama.
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