Shares of Nykaa surged 5.5% during the intraday trading on Monday, before giving up some of the gains to end the session 2.9% higher at INR 172.65 on the BSE
The stock has gained about 14% over the last week on the back of an overall improvement in investor sentiment about new-age tech stocks and strong growth in its fashion vertical in Q2
Shares of Nykaa have gained 23% in two weeks since the release of its financial statements for the quarter ended September 2023
Shares of beauty and fashion ecommerce giant Nykaa continued last week’s uptrend on Monday (November 20), surging 5.5% to INR 177 during the intraday trading on the BSE.
However, the shares shed some of their gains to end today’s trading session 2.9% higher at INR 172.65 on the BSE.
The stock has gained about 14% over the last week on the back of an overall improvement in investor sentiment about new-age tech stocks and a strong growth in the company’s fashion vertical in the September quarter.
Despite new-age tech stocks like Zomato, Delhivery, and Paytm rallying sharply this year, Nykaa was trading lower year-to-date (YTD) till last week. However, after Friday’s jump of 9.5%, it started trading in the green, with shares up 8.4% YTD.
After today’s rally, Nykaa shares are trading 11.5% higher YTD.
Commenting on the rise in the share price, an analyst told Inc42 that Nykaa was due for a rally for some time, in line with the increase seen in other new-age tech stocks.
“Most other internet stocks had moved up and Nykaa was positioning itself for that. If we look at the Q2 earnings, while the results were okay, fashion vertical did quite well. Hence, a thesis was getting built that investors might finally start ascribing a value to the fashion vertical. So, a 10%-15% increase was anticipated following this,” the analyst said.
It must also be noted that Nykaa’s investors’ meet is scheduled for Tuesday (November 21).
Nykaa reported a net profit of INR 7.8 Cr in Q2, which was a 50% jump on a year-on-year (YoY) basis and a 44.4% rise sequentially.
The company’s total gross merchandise value (GMV) increased 25% YoY to INR 2,943.5 Cr in the September quarter, with the fashion vertical surpassing the growth of the BPC vertical. The GMV of the fashion vertical grew 27% YoY to INR 762.8 Cr during the quarter.
Shares of the company have gained 23% in two weeks since the release of its Q2 financials.
Meanwhile, Nykaa gained today despite the overall market ending in the red amid the ongoing conflicts in various parts of the world and concerns about global economic slowdown.