Last Friday, there was a rush to buy shares of FSN E-Commerce Ventures, the parent company of beauty and personal care firm Nykaa. On the last trading day of the week, this share reached Rs 170.95 with a jump of 2.43%. During trading the share price went up to Rs 175.15. On January 10, 2024, the share price went up to Rs 195.40, which is also its 52-week high. At the same time, the price of this share in August 2023 was Rs 130. This is the stock’s 52-week low. The stock is up nearly 20% in the last 12 months.
Expert opinion
Kunal Shah of brokerage LKP Securities says that Nykaa shares can go up to Rs 200. Stop loss for this share has been given at Rs 160. Whereas the target price range is Rs 180-200. The brokerage said the stock is showing early signs of bottom formation on long-term charts. This is evidenced by volume-based purchasing. It is on the verge of a breakout from the falling trendline on the daily chart, which will accelerate the momentum going forward. Meanwhile, Nykaa has allotted 4,73,138 equity shares under its Employee Stock Option Plan (ESOP). These shares have been allotted at the face value of Re 1. The value of the newly allotted shares is approximately Rs 8.08 crore.
hope for the future
According to Nykaa, its FY28 margins are seen to be in line with 25.5% in FY2024. In the fashion segment, Nykaa is expecting 2.5-3×11 growth in net selling values over the next three years. The company is looking at around 150 – 200 basis points improvement in gross margins over the next three years and is also targeting 1300-1600 basis points EBITDA margin improvement. For global brands sold by Nykaa, the company expects turnover to triple from current levels by FY2028.
When did the IPO come?
Nykaa made its stock market debut in 2021 at an IPO price of ₹1125. The listing of this IPO took place at double price. However, later the company distributed bonus shares, after which the share price became very cheap.
