The parent company of Nykaa, FSN E-Commerce Ventures, saw an increase in the share price of 8.30% in intraday trading today, bringing the price per share to a new 52-week high of ₹191.60.
The parent company of Nykaa, FSN E-Commerce Ventures, saw an increase in the share price of 8.30% in intraday trading today, bringing the price per share to a new 52-week high of ₹191.60. Investors responded favorably to the company’s Q3 FY24 business report, which was released on January 7.
Q3 Financial Report
The company predicted mid-20s growth in the gross merchandise value (GMV) of its beauty and personal care vertical in the Q3FY24 business update. On a year-over-year (YoY) basis, the net sales value (NSV) grew by about 20%.
Furthermore, the business projects that the fashion vertical’s GMV will increase by about 40% during the quarter, and that its YoY NSV growth will be in the low thirty range. According to the corporation, its growth in beauty and personal care (BPC) for the quarter exceeded the growth of the industry. It does, however, point out that the industry’s present growth is below its long-term trajectory and projects a near- to mid-term return to the median, supported by a positive macroeconomic and demographic outlook.
Nykaa emphasized how its influence in the BPC sector has grown, especially in light of the early success of more recent ventures like Superstore by Nykaa. As to the company’s statement, this vertical has grown significantly and currently accounts for a noteworthy portion of its total net worth.
The company reported a 50% increase in its consolidated net profit to ₹7.8 crore for the September quarter (Q2FY24) over the same period the previous year, when it had only made ₹5.2 crore.
During the quarter, it recorded a 22.4% increase in its consolidated revenues to ₹1,507 crore.
Net sale value (NSV) increased by 19% year over year (YoY), while the combined beauty and personal care GMV increased by 23% YoY.
The stock saw a 26.16% increase in November alone after this remarkable gain, marking its greatest monthly return since March 2022. After finishing CY23 with a gain of 12.33%, it has gained 6.90% so far this month.
The stock has a ‘buy’ call issued by international brokerage house JM Financial, with a target price of ₹210 per share. Nykaa’s fashion business has shown early signs of profitability, which has given the brokerage confidence.
