FSN E-Commerce Ventures (Nykaa)
➡️Upcoming Event - Bonus of 5:1
👉Ex Bonus Date - 10th Nov 2022
👉This internet platform company posted a surge in its net profit, up 251.1% YoY to Rs 4.1 crore, and revenue grew 39% YoY to Rs 1,230.8 crore in Q2FY23, as a result of new launches and festive demand.
But its revenue and profit missed estimates by 0.3% and 30.5%, respectively.
👉Nykaa’s gross merchandise value (GMV) also rose 45% YoY to Rs 2,345.7 crore during the quarter, with Fashion GMV contributing 26%.
👉Falguni Nayar, Executive Chairperson, Managing Director, and CEO, said, "Consumer demand for premium beauty, personal care, and wellness is showing signs of buoyancy as we gear up for a promising H2FY23.”
👉However, the company has been underperforming ahead of the expiry of the one-year lock-in period for its pre-IPO shareholders on November 10.
👉It hit a 52-week low in the past week due to a large sell-off, especially from foreign investors.
👉On the bright side, several brokerages are optimistic about the company because of strong Q2 results.
👉Foreign brokerage Jefferies said the company delivered better than estimates on the GMV, revenue, and EBITDA
👉Jefferies upgraded FY23-26 Ebitda estimates by 24-33 percent on better margins but JM Financial tweaked estimates as it sees revenues declining by 11 percent and EBITDA margins marginally improving by 10-100 basis points over FY23-27.
It said its downgrade factors in the flat performance in unique visitors & just 1 lakh incremental transacting users in the fashion segment.
👉Kotak Institutional Equities, which has a "buy" rating with a target of Rs 1,615 also trimmed FY23-25 revenue estimates by 2.5 percent on account of slow growth in the fashion vertical.
👉“However, we increase FY23-25 Ebitda by 4-15 percent on account of cost optimisation, related to lower ad spends in line with the reduction in growth in the fashion segment.
👉Higher offline expenses drive higher interest and depreciation charges, resulting in modest FY2023-25 EPS changes,” it added.
👉‘Buy’ rating with a target price of Rs 1,650
Source of information ( MoneyControl)
👉Note : expect volatility ahead of lock-in expiry.
⚠️Disclaimer
All views and investment tips are shared for educational and informational purposes only. kindly check with certified experts before taking any investment decision.
Source of information - Moneycontrol.com
link
NYKAA Stock Overview