Nykaa Shares Surge 11% Intraday To Hit An 11-Month High

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Shares of beauty and fashion ecommerce major Nykaa jumped as much as 11% to touch INR 170.10 during Friday’s intraday trade on the BSE, hitting an 11-month high. However, the stock later pared some of its gains, ending the day 9.5% higher at INR 167.75.

While most new-age tech stocks have gained sharply so far this year on the back of a promising path to profitability, it’s not the case with Nykaa. Due to the slow growth in its beauty and personal care (BPC) vertical and some degrowth in the fashion segment, the stock braced for rather muted gains this year.

However, following Friday’s jump, shares of Nykaa started trading in the positive zone this year and are up 8.4% year to date (YTD).

Shares of Nykaa have been witnessing a strong uptrend since last week, following its Q2 FY23 earnings published on November 6. Though the company’s BPC business showed slow growth, the market has turned bullish due to a rebound in the Nykaa Fashion business.

On a year-on-year (YoY) basis, Nykaa’s net profit jumped 50% to INR 7.8 Cr in Q2, while it was up 44.4% sequentially.

The company’s total gross merchandise value (GMV) increased 25% YoY to INR 2,943.5 Cr in the quarter, with the fashion vertical surpassing the BPC growth.

The shares have gained over 19% in the last two weeks since it released its results for the September quarter.

After Nykaa published its results, the Street remained divided on the back of the rising competition in the BPC space.

While some analysts see the competition from the entry of Reliance and Tata as a potential threat to Nykaa’s growth trajectory, JM Financial notes that Nykaa would retain its competitive edge as the preferred platform for brand launches.

Shares of Nykaa rallied on Friday, even though the broader market was under pressure. The RBI’s action to raise risk weights for unsecured loans dampened banking stocks and caused a temporary disruption in the broader indices’ resurgence, said Vinod Nair, head of research at Geojit Financial Services.

The post Nykaa Shares Surge 11% Intraday To Hit An 11-Month High appeared first on Inc42 Media.

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Nykaa Shares Surge 11% Intraday To Hit An 11-Month High

Shares of beauty and fashion ecommerce major Nykaa jumped as much as 11% to touch INR 170.10 during Friday’s intraday trade on the BSE, hitting an 11-month high. However, the stock later pared some of its gains, ending the day 9.5% higher at INR 167.75.

While most new-age tech stocks have gained sharply so far this year on the back of a promising path to profitability, it’s not the case with Nykaa. Due to the slow growth in its beauty and personal care (BPC) vertical and some degrowth in the fashion segment, the stock braced for rather muted gains this year.

However, following Friday’s jump, shares of Nykaa started trading in the positive zone this year and are up 8.4% year to date (YTD).

Shares of Nykaa have been witnessing a strong uptrend since last week, following its Q2 FY23 earnings published on November 6. Though the company’s BPC business showed slow growth, the market has turned bullish due to a rebound in the Nykaa Fashion business.

On a year-on-year (YoY) basis, Nykaa’s net profit jumped 50% to INR 7.8 Cr in Q2, while it was up 44.4% sequentially.

The company’s total gross merchandise value (GMV) increased 25% YoY to INR 2,943.5 Cr in the quarter, with the fashion vertical surpassing the BPC growth.

The shares have gained over 19% in the last two weeks since it released its results for the September quarter.

After Nykaa published its results, the Street remained divided on the back of the rising competition in the BPC space.

While some analysts see the competition from the entry of Reliance and Tata as a potential threat to Nykaa’s growth trajectory, JM Financial notes that Nykaa would retain its competitive edge as the preferred platform for brand launches.

Shares of Nykaa rallied on Friday, even though the broader market was under pressure. The RBI’s action to raise risk weights for unsecured loans dampened banking stocks and caused a temporary disruption in the broader indices’ resurgence, said Vinod Nair, head of research at Geojit Financial Services.

The post Nykaa Shares Surge 11% Intraday To Hit An 11-Month High appeared first on Inc42 Media.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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