Nykaa shares buzz in weak market after many brokerages raise target price

Shares of FNS E-commerce Ventures, parent company of Nykaa, gained 2.9 per cent in weak market, logging an intraday high at Rs 174.6 per share. Around 9:45 AM, Nykaa share price was up 1.15 per cent at Rs 171.55 per share. In comparison, the BSE Sensex was down 0.15 per cent at 77,199.42. The counter saw buying after many brokerages were upbeat on Nykaa's  Q3 performance.  Mirae Asset Capital Markets has upgraded its rating to 'Buy' from 'Add' with a target of Rs 207 per share. 

 

The brokerage believes the company's continuous changes in strategies will drive growth in the fashion business and a potential surge in expenses for opening stores in the Gulf Cooperation Council (GCC) market. Further, analysts at Mirae believe Nykaa is well-positioned to maintain its market share in the beauty market and premium online fashion market, given its efforts to acquire new customers, expand into new categories, and form exclusive partnerships with global brands. 

 

Meanwhile, Nuvama Institutional Securities maintained a 'Buy' call with a target of Rs 205 per share. The brokerage forecasts strong growth in the beauty and personal care (BPC) segment although it will keep an eye on revenue growth suitability in the fashion segment due to increasing competitive intensity. Numava analysts expect improvement in profitability on the back of lower losses in the fashion and eB2B segment.

 

Most global brokerages have also raised their target prices on Nykaa after Q3 results were announced on Monday, after market hours. 

 

Citi has iterated 'Sell' and has raised the target to Rs 160 per share from Rs 155. JP Morgan maintained an 'Underweight' rating with a target of Rs 165 per share. Morgan Stanley continued with an 'Overweight' rating and maintained a target of Rs 200 per share. Jefferies maintained 'Buy' and raised the target to Rs 240 per share from Rs 220. Goldman Sachs iterated a 'Neutral' rating and raised the target to Rs 142 per share from Rs 140. 

Nykaa Q3 results 

In the third quarter ended December 31, 2024, Nykaa reported a sharp 51.3 per cent rise in its net profit to Rs 26.41 crore in Q3FY25, against Rs 17.45 crore in the year ago period. Sequentially, the net profit rose 103.6 per cent from Rs 12.97 crore a quarter ago.

 

The firm’s consolidated revenue from operations stood at Rs 2267.2 crore, up 26.7 per cent from Rs 1,788.8 crore reported in the corresponding quarter of the previous financial year.