Nykaa Shares Rally 19% To Hit New 52-Week High At INR 228.5

SUMMARY

The stock has jumped nearly 29% year-to-date, compared to the 12% rise in the BSE over the same period. Over the last 12 months, it has rallied almost 60%, beating BSE’s returns of 24%

While Nykaa share prices surged to a new 52-week high in early trading hours today, the startup’s market valuation surpassed INR 60,214 Cr (around $7.2 Bn)

The Falguni Nayar-led startup more than doubled its consolidated net profit at INR 13.6 Cr in Q1 FY25 from INR 5.4 Cr in the year-ago quarter

Shares of Nykaa ended a two-day losing streak and rallied almost 19% during intraday trading today (August 21) to hit a new 52-week high at INR 228.5 apiece on the BSE.

However, the stock pared some of the gains to end the day 9.4% higher at INR 210.75 on the BSE.

The stock has jumped nearly 29% year-to-date, compared to the 12% rise in the BSE over the same period. Over the last 12 months, it has rallied almost 60%, beating BSE’s returns of 24%.

While Nykaa share prices surged to a new 52-week high in early trading hours today, the startup’s market valuation surpassed INR 60,214 Cr (around $7.2 Bn).

The Falguni Nayar-led startup more than doubled its consolidated net profit at INR 13.6 Cr in the first quarter of the fiscal year ended June 30, 2024 (Q1 FY25) from INR 5.4 Cr in the corresponding quarter last year.

Revenue from operations also rose nearly 23% year-on-year to INR 1,746.1 Cr during the quarter under review.

Following Nykaa’s strong Q1 show, brokerage Nuvama has maintained its ‘buy’ recommendation on the stock and increased its price target to INR 220 from INR 203 earlier.

Ahead of its Q1 FY25 earnings report, Nykaa also announced two major acquisitions in the beauty and personal care (BPC) segment.

The listed-beauty and fashion ecommerce major said it has acquired an additional 39% stake in its subsidiary Dot & Key for INR 265.3 Cr. Further, Nykaa has also picked up an additional stake in the beauty brand Earth Rhythm for INR 44.5 Cr.

Earlier, it was also reported that Nykaa was looking to raise INR 125 Cr (about $15 Mn) via non-convertible debentures (NCDs) from an undisclosed foreign portfolio investor.

In an exchange filing last month, the company said that the board of directors of Nykaa E- Retail Limited, a wholly owned subsidiary of FSN ECommerce Ventures Limited, has approved and authorised the issuance of up to 12,500 NCDs at a face value of INR 1 Lakh each to raise INR 125 Cr.

Prior to that, in May, Nykaa announced a major restructuring of its business verticals, where its board approved the acquisition of western wear and accessories business of Nykaa Fashion Limited in a cash deal of INR 133.7 Cr.

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