'Add' Nykaa Shares Maintains ICICI Securities Post Superior Q4 Execution In Beauty And Personal Care

Nykaa's revenue grew 23.6% YoY (down 9.1% QoQ) to Rs 20.6 billion driven by beauty (+24.7% YoY) and fashion (+10.7% YoY). Overall GMV was up 27.5% YoY to Rs 4.1 billion driven by 30.8% YoY and 18.4% YoY increase in beauty and fashion segments respectively..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.FSN E-Commerce Ltd. beauty and personal care net sales valeu grew 26%YoY in Q4 FY25 ahead of online beauty market (our estimate: ~10%YoY). This was achieved despite reduction in discounting intensity (~200bps QoQ). Ad revenues at 5.5% of BPC gross merchandise value (ex-owned brands) have not yet recovered. We think this could be a key driver for margin improvement on FY26E. Annual unique transacting customers growth was sustained at 27%YoY though marketing expenses declined ~110 bpsQoQ (as % of NSV). Resultant BPC Ebitda margin grew 80bps QoQ / 60bps YoY (~50bps beat on ISec est.). Fashion GMV grew 18%YoY in Q4 FY25 (9M FY25 run rate 10.3%YoY) driven by increased discounts (~130bpsYoY) and lower take rate (~120bpsYoY). Working capital days improvement of ~19% YoY aided material improvement in CFO, a key positive. We maintain Add given superior execution in BPC..Click on the attachment to read the full report:.Nykaa Share Price Declines As Brokerages Mixed Post Q4 Results.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Add' Nykaa Shares Maintains ICICI Securities Post Superior Q4 Execution In Beauty And Personal Care

ICICI Securities maintains 'Add' rating on Nykaa with a DCF-based revised target price of Rs 230

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