Nykaa, direct-to-consumer beauty and fashion ecommerce platform, has allotted 1.8 lakh equity shares to its employees under the Employee Stock Option Plan (ESOP), following an impressive 66.3% jump in consolidated net profit to INR 12.97 crore in the second quarter of FY25.
The equity shares so allotted, shall rank pari-passu – Nykaa
“…The equity shares so allotted, shall rank pari-passu with the existing equity shares of the Company in all respects,” Nykaa stated in a filing, according to INC42. However, the company has not disclosed the change in its paid-up capital.
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Notably, Nykaa’s employee benefit expenses rose by 18.5% to INR 161.49 crore in Q2 FY25, demonstrating its commitment to rewarding its workforce. This investment in employees has contributed to the company’s growth, with revenue from operations jumping 24.4% to INR 1,874.74 crore.
JM Financial maintains “buy” recommendation for Nykaa
Meanwhile, Brokerage firm JM Financial maintained its “buy” recommendation for Nykaa, citing the company’s ability to overcome “unfavourable demand environment” and deliver growth, with a target price of INR 250. However, Bernstein adopted a more cautious approach, maintaining its “market-perform” rating and highlighting an 8.6% decline in Nykaa’s EBIDTA margin, with a target price of INR 165.
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Further, Nykaa’s revenue breakdown reveals a strong performance in the beauty and personal care segment, with a 24.3% year-on-year jump to INR 1,702.89 crore. The fashion vertical also showed promise, posting a 21.7% revenue surge to INR 166.10 crore.
In addition, the company’s overall expenses rose by 23.7% year-on-year (YoY) and 7.3% quarter-on-quarter to INR 1,858.93 crore, primarily attributed to purchase of traded goods, employee benefit expenses, and marketing.
