Today i.e. in the trading of February 10, the shares of online fashion and beauty retailer company NYKAA saw a fall of up to 4 percent in intraday. This fall in the shares of the company has come due to weak third quarter results.
Let us inform that on February 09, the company has declared the results of the third quarter ended December 31, according to which the consolidated net profit of the company declined by 59 per cent to Rs 27.9 crore in the December quarter, while the consolidated revenue of the company in the quarter stood at 36 per cent year-on-year. Percentage has increased to Rs 1,098 crore.
In the third quarter, the company’s EBITDA stood at 69 per cent during the quarter, though the margin declined to 6.3 per cent due to heavy marketing spending.
In the Beauty and Personal Care segment (BPC), the GMV grew 32 per cent year-on-year to Rs 1,533 crore, while the GMV in the fashion segment grew 137 per cent to Rs 510 crore. Income from Marketplace Services registered a growth of 154 per cent, mainly on account of fashion GMV growth. Apart from this, there was a growth of 53 per cent in advertising revenue on a year-on-year basis.
Brokerage firms Goldman Sachs and Morgan Stanley India are looking optimistic about this stock after weak quarterly results.
Nifty may soon touch the level of 17600-17700, today’s intraday call which can make strong earnings
Morgan Stanley has said in a note that the company’s profits have weakened, but its earnings and margins are better than expected. The company’s focus remains on growth and profits. Morgan Stanley, while giving an Overweight call on this stock, has fixed the target of this stock at Rs 2040 per share.
On the other hand, Goldman Sachs says that it says that the margins have been as per the estimates. Although the GMV is lower than expected, there has been no change in the company’s long-term growth outlook. However, slowing growth in the fashion segment will raise investor concerns.
Goldman Sachs has given Buy rating on Nykaa share and has given a target of Rs 2420 for this stock.
Former investment banker Falguni Nair founded FSN E-Commerce Ventures Ltd in 2012, which runs an online marketplace named Nykaa. Nykaa sells beauty and wellness products on its platform. It has two business verticals – Nykaa and Nykaa Fashion.
At present, around 11.13 am, this stock is trading at Rs 1793.35, down by Rs 56.50, or 3.05 per cent, on NSE.
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