Shares of Nykaa’s parent company FSN E-Commerce Ventures saw a jump of up to 5.5 per cent on Wednesday. At around 2:30 pm, NSE shares were trading at Rs 1,500.20 with a jump of 5.44 per cent.
Citigroup India BUY Rating
Brokerage firm Citigroup India earlier this week started covering Nykaa lions with a ‘BUY’ rating and has given a target price of Rs 1,620. This is about 15 per cent more than the current price of Nykaa. However, the target price of the brokerage is currently much lower than Nykaa’s 52-week high of Rs 2,574 and it is still trading around 40 per cent below this level.
Nykaa’s business model is good: Hiren Veda
Hiren Ved, CEO, Alchemy Capital Management, also believes that Nykaa has the best business model among all the newly listed companies recently.
He said, “I think Nykaa can do very well in the next few years. They already have a profitable business model, while the rest are working on it in my opinion. So in my opinion. Some investors looking to invest for the long term can bet on this.”
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questions were raised on valuation
During the recent slump in the market, several experts questioned the valuations of almost all the new age companies including Nykaa and termed them costly. The same reason was given behind the recent fall in the shares of these companies.
Hiren Ved said, “Many such companies have realized that it is quite different to face retail and institutional investors after listing in the market as compared to raising money from investors in Series A, B and C rounds. However, I find this It also feels that investors have better options at the moment and they should buy good quality stocks.”
Disclaimer: The views expressed on moneycontrol.com are the personal views of the experts. Website or management is not responsible for this. Money Control advises users to consult a certified expert before taking any investment decision.
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