JM Financial states, “Nykaa’s strong performance in its FY24 Annual Report and its strategic positioning across key market segments provide a solid foundation for future growth.” The brokerage’s optimism is based on Nykaa’s robust market share and its potential to benefit from rising consumer spending in the beauty and fashion segments.
Nykaa’s FY24 Annual Report highlighted significant developments, including the company’s strong growth trajectory and profitability improvements. The company expects a mid-to-late twenties growth in its beauty and personal care (BPC) segment, driven by rising consumer spending as India’s GDP per capita increases. With India emerging as a key market for global brands, Nykaa is well-positioned to capitalize on this trend.
In the fashion segment, Nykaa Fashion has carved out a niche with a 20% market share of online premium fashion. The company aims to expand its store count and improve profitability, targeting a significant increase in net sales value (NSV) over the next three years.
The brokerage remains bullish on Nykaa’s prospects, emphasizing that the company’s strong market position and strategic initiatives are likely to drive continued growth.
On Thursday, at 10:57 am, the scrip was trading 2.5% lower at Rs 211.7 on BSE. However, the stock has surged 24% on a year-to-date basis, and nearly 60% in the last year.In Q1 FY25, Nykaa reported a consolidated net profit of Rs 13.64 crore, which was up by 152% from Rs 5.42 crore posted by the beauty & personal care company in the year-ago period. The revenue from operations for the reporting quarter stood at Rs 1,746.11 crore, which was up by 23% from Rs 1,421.82 crore reported in the corresponding quarter of the previous financial year.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)