- Nykaa's Q4 net profit rose to Rs 78.4 crore from Rs 20.3 crore last year
- Revenue increased 28.4% year-on-year to Rs 2,648 crore in Q4
- Beauty revenue grew 27%, while fashion revenue rose 40% and turned EBITDA positive
Shares of Fsn E-Commerce Ventures Ltd. aka Nykaa rose over 4% on Friday after the company reported strong Q4 results led by margin expansion, robust beauty demand and a key milestone in its fashion business. The stock was trading at Rs 281.10 apiece.
The company posted a net profit of Rs 78.4 crore for Q4, sharply higher than Rs 20.3 crore a year earlier. The revenue rose 28.4% year-on-year to Rs 2,648 crore. The company's largest growth engine was led by beauty with the revenue rising 27%. Fashion revenue grew an even faster 40%. Importantly, the fashion business turned Ebitda positive during the quarter.
"Over the past three years, Nykaa has evolved into a multi-engine growth platform, with our Beauty and Fashion businesses doubling their GMV, while our newer businesses like Superstore and House of Nykaa have grown 4x during the same period," Nykaa Executive Chairperson, founder and CEO Falguni Nayar said.
Jefferies maintained its 'buy' rating and raised its target price to Rs 350 from Rs 315, calling the performance "Flawless Beauty." The brokerage said fashion's breakeven suggests management may have "cracked the code" in the segment. However, not all brokerages turned bullish. Citigroup maintained its 'sell' rating, while Macquarie Group retained an 'underperform' call despite acknowledging healthy beauty margins and strong demand trend.
Nykaa Share Price Today
Nykaa Share Price Today
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The scrip rose as much as 4.04% to Rs 281.10 apiece intraday on Friday at 9:30 a.m.. This compares to a 0.38% rise in the NSE Nifty 50 Index.
It has risen 38.06% in the last 12 months and 5.03% year-to-date. Total traded volume so far in the day stood at 3.64 times its 30-day average. The relative strength index was at 46.91.
Out of 26 analysts tracking the company, 14 maintain a 'buy' rating, seven maintain a "hold", and five maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 285.91 implies an upside of 1.4%.
ALSO READ: Nykaa Q4 Results: Profit Zooms 4x, Revenue Tops Rs 2,600 Crore
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