Nykaa shares fall 2% as Jefferies finalizes ‘buy’ post visit to Nykaaland 2.0 festival
Shares of e-trailer fashion retailer FSN E-Commerce Ventures in Monday (November 4) trading were trading in the red in the lower market. At around 10:33 am, shares of the company were down 1.47 percent or Rs 2.7 at Rs 181.45 apiece, and the day’s low touched levels of Rs 180.5 per share on the BSE.
The stock dragged on even as global trader Jefferies maintained its ‘buy’ call on the stock with a price target of Rs 220, after attending the company’s Nykaaland 2.0, the country’s one-of-a-kind beauty festival. The set target implies gains of around 20 percent from the last close.
A 3-day corporate festival in Mumbai recently hosted over 80 brands and over 1,000 content creators. In addition, the event attracted more than 25,000 visitors and 400,000 samples were distributed.
Jefferies noted that brands were pleasantly surprised by the engagement and level of user engagement. The brokerage added that grooming and grooming trends are emerging, making India an important growth market. Additionally, according to the brokerage, Brands considers Nykaa a valuable partner.
Nykaa results for Q2
In the September quarter, the company’s net profit rose 50 percent year-on-year to Rs 7.8 crore. In the previous June quarter, the net profit of the company was Rs 5.42 crore. Income from operations during the review period rose 22 percent to Rs 1,507 crore, from Rs 1,230.82 crore a year ago. The increase in revenue came despite the delay of the festivities this year compared to last year.
The company also highlighted that the retail business continues to grow post-Covid.
The highest value of Nykaa property
In the past one year, the stock has gained over 28 percent compared to the Nifty 50’s gain of 24 percent over the same period.
