Nykaa’s share price fell more than 2% in early trading on Tuesday, reaching ₹188.80 on the BSE, even though the company reported solid performance for the second quarter of 2024. The stock dropped as much as 2.65%.
FSN E-Commerce Ventures, Nykaa’s parent company, announced that its consolidated net revenue grew in the mid-twenties percentage range for the quarter ending September 2024. The beauty segment showed strong growth, with net revenue and net sales value (NSV) both increasing by mid-twenties percentages, while gross merchandise value (GMV) grew even more. The company saw strong performance across its omnichannel retail, owned brands, and eB2B distribution businesses, ahead of the festive season.
ADVERTISEMENT
Be part of our community by downloading and registering on the Angel One app. Your support helps us keep delivering quality content.
In the fashion segment, NSV growth was around the early teens for Q2 of FY25. The acquisition of LBB, a content platform, is also performing well, contributing to overall revenue growth in the early twenties percentage range for the quarter.
Nykaa noted that demand was low in the first half of this financial year, but there are expectations for a gradual recovery in the second half, boosted by the festive and wedding seasons.
Nykaa Q2 Results Preview:
Analysts estimate that Nykaa will report a 26.2% year-on-year increase in revenues for Q2 FY25, reaching ₹1,902 crore, mainly due to its beauty and personal care (BPC) business, while fashion sales are expected to remain sluggish. The company’s net profit is projected to jump to ₹27.9 crore, up from ₹9.3 crore year-on-year. Additionally, EBITDA is expected to rise by 45% to ₹116.9 crore, with a slight improvement in the EBITDA margin to 6.1% from 5.4% year-on-year.
Despite the recent drop, Nykaa shares have decreased over 11% in the past month but have risen more than 8% over the last three months. The stock has gained over 11% year-to-date and has increased more than 27% in the past year.
As of 9:45 am, Nykaa shares were trading 1.55% lower at ₹190.95 each on the BSE.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
ADVERTISEMENT
Angel One gives free daily stock tips and detailed research on their mobile app. With easy risk management, you can improve your experience and increase your stock market investments.
