Nykaa Hits 52-Week High By Jumping 10% Intraday; Closes At INR 200

by · Inc42

SUMMARY

  • Shares of Nykaa touched an intraday high at INR 202 on the BSE. The stock ended the session 9.3% higher from the previous close
  • Nykaa shares have been on an uptrend since the beginning of June this year
  • The startup expects to post a strong revenue growth of around 22-23% year-on-year in Q1 FY25, with gross merchandise value rising in the mid-twenties percentage range
  • Added to Saved Stories in Login

Shares of fashion and beauty ecommerce major Nykaa jumped as much as 10.4% to touch a 52-week high at INR 202 during the intraday trading on the BSE on Tuesday (July 30).

The stock shed some of the gains by the end of the trading session and ended the day 9.3% higher at INR 200. Nykaa shares had last closed at this level in mid-November of 2022, the year it made the stock market debut (adjusted for stock split).

The stock witnessed a significant rise in volume during today’s session, with 6 Cr shares traded cumulatively on the BSE and the NSE.

After seeing some corrections and trading sideways for a while, Nykaa shares have been on an uptrend since the beginning of June this year. The shares have been rising since last week after Nykaa said it would raise INR 125 Cr (about $15 Mn) via non-convertible debentures (NCDs) from an undisclosed foreign portfolio investor for Nykaa E- Retail Limited.

After the announcement on June 22, shares of Nykaa rose almost 5% in four trading sessions to cross the INR 180 mark.

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The stock has gained 15% year to date.

The startup said last month that it is expected to post a strong revenue growth of around 22-23% year-on-year in Q1 FY25, with gross merchandise value (GMV) rising in the mid-twenties percentage range during the period.

JM Financial raised its price target on Nykaa to INR 230 from INR 220 earlier, after the company held its investor day last month.

“Despite the muted demand environment in FY24, Nykaa did gain market share across online BPC (beauty and personal care) and Fashion, suggesting strong brand affinity as well as the benefits of Nykaa’s attempts at category expansion. While Superstore as well as international expansion is likely to require investments and hence would impact near-term margin, the company would accrue benefits from a larger BPC and Fashion business,” said the brokerage.

Meanwhile, ICICI Securities upgraded the stock to ‘add’ from ‘hold’, raising the target to INR 195 from INR 175 earlier.

Currently, 14 out of the 23 analysts covering Nykaa have a ‘buy’ or higher rating, with an average price target of INR 192.87.