Kotak also cut Nykaa’s fair value to INR 190 from INR 195 earlier
The brokerage trimmed its FY25-27 EBITDA estimates by 3-7%, given lower margins expected in BPC and eB2B as Nykaa boosts quicker deliveries
Shares of Nykaa, which fell in two previous consecutive sessions this week, declined almost 2% to INR 207.7 on the BSE during the intraday session on Thursday
Kotak Institutional Equities downgraded beauty and fashion ecommerce major Nykaa to ‘sell’ from a previous ‘add’ rating while lowering the fair value to INR 190 from INR 195 earlier.
The brokerage said Nykaa might witness higher fulfillment costs due to quicker deliveries, adversely impacting its EBITDA margin.