Nykaa Share Price Declines As Brokerages Mixed Post Q4 Results
HSBC downgraded Nykaa's parent company, FSN E-Commerce Ventures Ltd., to 'hold' and reduced the target price to Rs 200 from Rs 250, citing limited upside and margin risks.
Nykaa's share price declined nearly 3% after the stock recived mixed reactions from Morgan Stanley and HSBC following fourth earnings.
HSBC downgraded Nykaa's parent company, FSN E-Commerce Ventures Ltd., to 'hold' and reduced the target price to Rs 200 from Rs 250, citing limited upside and margin risks.
However Morgan Stanley kept its 'overweight' rating with a Rs 191 target, noting sustained margin improvement and strong growth in core segments.
The beauty and fashion retailer's net profit surged 111.11% to Rs 19 crore in the fourth quarter of fiscal 2025 from Rs 9 crore. Its revenue rose 23.63% to Rs 2,061 crore, compared to Rs 1,667 crore in the same period last year.
The company's Ebitda saw a rise of 42.39%, amounting to Rs 131 crore versus Rs 92 crore previously. This improvement was reflected in the Ebitda margin, which climbed 83 basis points to 6.35% from 5.51%.
Nykaa's beauty segment demonstrated strong performance with a 30% growth in gross merchandise value, while its profitable store network delivered a 31% year-on-year GMV growth. The Superstore by Nykaa experienced a 57% GMV growth, and the fashion segment saw a 19% revenue increase year-on-year.
