15 Nov , 2021 By : Kanchan Joshi
Shares of Nykaa slumped over 6% to Rs2,225 apiece on the BSE in Monday's opening deals on the BSE after the newly listed company reported its quarterly earnings on Sunday. E-commerce beauty giant Nykaa's parent FSN E-Commerce Ventures reported a 95 percent decline in net profit at Rs1.2 crore for the quarter ended in September as compared to Rs27 crore in the year-ago quarter.
Its revenue from operations, on the other hand, witnessed a growth of 47% to Rs885.3 crore in the quarter under review from Rs603.8 crore in the September 2020 quarter.
According to the filing, Nykaa's Beauty and Personal Care GMV (gross merchandise value) grew by 38% year-on-year (YoY) to reach Rs1,186 crore, while Fashion GMV grew by 215% to reach Rs437 crore.
The monthly average unique visitors increased to 21 million with YoY growth of 62% in the Beauty and Personal Care vertical and to 16 million with a growth of 328% from the year-ago quarter in the Fashion vertical. The company made its stock market debut on November 10.
"Nykaa's profit has gone down drastically but the company has managed to report surge in revenue to the tune of near 50 per cent on year-on-year basis. I would continue to recommend investors to buy Nykaa shares at around Rs1900 per share levels for two year target of Rs3600 maintaining strict stop loss at Rs1770 per share levels," said Ravi Singhal, Vice Chairman at GCL Securities.
Nykaa has a diverse portfolio of beauty, personnel care and fashion products, including its owned manufactured brand products. The three-day share sale opened for subscription on October 28 and was subscribed 81.78 times on the last day of subscription on November 1.
The EBITDA margin of Nykaa has been on positive side since last 3 years and it’s 35% market share in online BPC will offer a good prospective for long term investors. However, we may see some profit booking in share but investors may accumulate in parts," said Ravi Singh, Head of Research & Vice President, ShareIndia
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