Nykaa Share Price: 40% Upside Potential In 2023, Say Analysts!!

The city of Mumbai serves as the headquarters for the Indian e-commerce company known as Nykaa. It offers products in the categories of beauty, wellness, and fashion on its website, mobile app, and more than 100 physical locations. It became the first unicorn business led by a woman in India in 2020.

However, recently analysts have forecasted that in the upcoming 12 months, Nykaa share price will increase by 40%. Everything related to the recent spike in the price of Nykaa shares will be covered in this article. So keep reading!!

Nykaa Share Price Gains Momentum

On Tuesday, November 7, shares of FSN E-Commerce Ventures, the company that owns the e-tailer brand Nykaa, almost reached a positive year-to-date ratio after analysts estimated a possible upside of as much as 40% over the following 12 months.

In the September quarter, Nykaa saw a 22.4% rise in revenue over the previous year and a 32.1% year-over-year increase in operating profit, or EBITDA. The company’s fashion division, which makes up a far smaller portion of the business, experienced year-over-year growth of 32%, while its beauty and personal care division experienced growth of 19% during the quarter. The company continues to shine with strong Q2 performance and bullish market recommendations:

The September quarter results reveal a considerable improvement in the contribution margin for the fashion business, which is the main reason why the stock has de-rated over the past year, according to ICICI Securities’ analysis.

The firm believes that a robust holiday season in the December quarter will likely contribute to the stock’s expected near-term re-rate. The price target on Nykaa has been increased from ₹165 to ₹185. With a ₹173 price objective, Morgan Stanley has kept its overweight rating on the company. It thinks that the December quarter will grow as a result of the change in the holiday season.

Nykaa Share Price Gains Momentum
Nykaa Share Price Gains Momentum

Jefferies is one of the four brokerages on the Street that predicts shares of Nykaa will reach ₹200 a share in the upcoming year. Strong user growth in both of the major divisions, according to the report, helped the top line, but the beauty and personal care (BPC) portfolio’s larger discounts reduced the gross margin.

Look at some more information here:

Twenty-three analysts who follow Nykaa have given the company a “buy” rating thirteen times. The other five have given it a “hold” rating and a “sell” rating five times. Nykaa’s stock has increased 2.1% to ₹150.40. Tuesday’s intraday high for the stock was ₹154.8; for 2023, the stock must close above ₹155.15 to become positive. The income statement of Nykaa for Q2 reveals the following:-

  • 22% YoY growth in consolidated revenue
  • Net Profit up by 50% YoY
  • Strong revenue growth in the Fashion business
  • Promising results in profitability and customer retention

Skylark posted Nykaa’s Income statement for Q2 FY23 which can be seen below:

In conclusion, investors have a bright future ahead of them thanks to Nykaa share price incredible rise and analysts’ excitement about a 40% upside potential in 2023. Nykaa appears to be well-positioned to propel additional growth in the thriving beauty and wellness industry due to its strategic movements and market positioning.

Investors will be eagerly monitoring the events as Nykaa sets out on its path to possible profits in the upcoming months. With the potential for significant profits, the stock’s future trajectory does definitely appears promising. Stay up to date on the most recent news by visiting our page, Digi Hind News, regularly.

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