Nykaa’s shares jumped nearly 8% in trading on August 23 after 1.4% of the company’s shares, or 4.09 crore shares, were sold through block deals. The seller is likely Harindarpal Singh Banga, a pre-IPO investor. Reports suggest Banga and his wife sold their shares at a floor price of ₹198 each, which is a 5.9% discount from Thursday’s closing price of ₹210.
Banga, the founder of The Caravel Group—a company involved in trading, maritime services, and asset management—was an early investor in Nykaa. As of the end of June, he owned 6.4% of Nykaa, which is about 18.28 crore shares. Other notable early investors in Nykaa include Narotam Sekhsaria, Sunil Kant Munjal, Mala Gaonkar, Steadview Capital, and TPG Growth.
Nykaa’s stock rose as high as 7.7% to ₹226.70 in intra-day trading today. It hit a 52-week high of ₹228.5 earlier this week and is now less than 1% away from that peak. The stock has also increased by over 72% from its 52-week low of ₹131.70 on August 28, 2023.
Over the past year, Nykaa’s shares have surged nearly 56% and have risen over 30% in 2024. The stock has been climbing for three months straight, gaining almost 17% in August, 9.4% in July, and 7.5% in June after dropping 7% in May.
For the quarter ending June 30, 2024, Nykaa reported a net profit of ₹13.6 crore, which is a 152% jump from ₹5.4 crore in the same period last year. The company’s revenue was ₹1,746 crore, up 23% from ₹1,422 crore a year earlier.
Nykaa Reports Strong Growth
Nykaa’s profit after tax (PAT) increased 50% from ₹9.07 crore in Q4 FY24, while revenue grew 4.6% from ₹1,668 crore in the January-March quarter. For the April-June quarter, Nykaa’s gross merchandising value (GMV) was ₹3,321 crore, up 25% year-on-year. The company’s EBITDA rose by 31% to ₹96 crore, and the EBITDA margin improved to 5.5%.
Nykaa, run by FSN E-Commerce Ventures, is a popular platform offering beauty, fitness, healthcare, skincare, and haircare products through both online and offline channels. The company operates in three main areas: Beauty and Personal Care (BPC), Fashion, and Others, which include Nykaa Man, Superstore, and international businesses.
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