Beauty and fashion e-commerce major Nykaa ended a two-day losing streak, with shares rallying nearly 19% during intraday trading to hit a new 52-week high of INR 228.5 each on the BSE.
However, the stock trimmed some gains, closing the day 9.4% higher at INR 210.75 on the BSE.
The stock has surged nearly 29% year-to-date, outpacing the BSE’s 12% gain over the same period. Over the past 12 months, it has risen almost 60%, exceeding the BSE’s 24% return.
While Nykaa’s share prices reached a new 52-week high in early trading today, the startup’s market valuation surpassed INR 60,214 crore (approximately $7.2 billion).
Continue Exploring: Nykaa shares surge 6% after robust Q1 results
Q1 FY25 Profit More Than Doubles:
The Falguni Nayar-led startup more than doubled its consolidated net profit to INR 13.6 crore for the first quarter of the fiscal year ended June 30, 2024 (Q1 FY25), up from INR 5.4 crore in the same quarter last year.
Revenue from operations increased nearly 23% year-on-year to INR 1,746.1 crore for the quarter under review.
͏Continue Exp͏loring: Nykaa’͏s Q1 FY͏͏25͏ ͏net͏ profit ͏͏s͏oars ͏152%͏͏ t͏o INR͏ 1͏3.6 Cr;͏͏ reven͏ue u͏p 2͏2͏͏.8%
Nuvama Increases Target to INR 220:
Following Nykaa’s strong Q1 performance, brokerage Nuvama has reaffirmed its ‘buy’ recommendation on the stock and raised its price target to INR 220 from INR 203.
Before its Q1 FY25 earnings report, Nykaa announced two significant acquisitions in the beauty and personal care (BPC) segment.
The listed beauty and fashion e-commerce major announced it has acquired an additional 39% stake in its subsidiary Dot & Key for INR 265.3 crore. Additionally, Nykaa has acquired a further stake in the beauty brand Earth Rhythm for INR 44.5 crore.
Earlier reports indicated that Nykaa was aiming to raise INR 125 crore (about $15 million) through non-convertible debentures (NCDs) from an unnamed foreign portfolio investor.
In an exchange filing last month, the company announced that the board of directors of Nykaa E-Retail Limited, a wholly owned subsidiary of FSN ECommerce Ventures Limited, had approved the issuance of up to 12,500 NCDs with a face value of INR 1 lakh each, aiming to raise INR 125 crore.
In May, Nykaa revealed a major restructuring of its business verticals, with its board approving the acquisition of the western wear and accessories business of Nykaa Fashion Limited in a cash deal valued at INR 133.7 crore.
