The shares of FSN E-Commerce Ventures Ltd Nykaa have reached a new 52-week low of Rs 1,130 in the early hours of Wednesday. In fact, in the last five days, the stock has shed approximately 10 per cent.
The company got listed in the Indian exchanges in November 2021. Soon after listing the shares reached their 52-week high of Rs 2,573. Currently, it is trading at a discount of 53 per cent from those levels.
Often referred to as the only “White sheep” among all the new-age stocks listed last year, the shares of Nykaa are now trading near its IPO issue price of Rs 1,125 per share.
FSN E-commerce Ventures Ltd popularly known as “Nykaa” is a digitally native consumer technology platform that delivers a content-led, lifestyle retail experience to consumers.
Despite the downward trend in the stock, analysts remain optimistic about the company. Here’s what they have to say:
Domestic brokerage firm Elara Capital has given a ‘Buy’ call with a target of Rs 2,211 per share on a long-term basis which represents an upside of 96% from the current levels.
“Nykaa may maintain its dominance with a 26.8 per cent market share in online BPC, led by a high repeat customers/usage base. Fashion is also an emerging segment for Nykaa, with a 3.3 per cent market share in the online fashion space. Nykaa’s revenue CAGR may be 60.4 per cent in FY23E-25E, on a smaller base,” the brokerage added.
JM Financial also has a ‘Buy’ call on the stock with a target of Rs 1,780 which represents an upside of 58 per cent from the current levels. The time frame given by them is one year.
Nykaa trades at 4.9 times the estimated FY25 revenue and 53.9 times the estimated Ebitda multiple. We expect Nykaa’s premium to sustain, as not many companies are estimated to deliver a gross merchandise value CAGR of 41 per cent, and Ebitda CAGR of 71 per cent over the FY22-27 period, the firm highlighted.
The Q2FY22 results of the company are yet to be announced. However, in Q1FY22, the company reported total revenue of Rs 37 crores and a net profit of Rs 9 crores.
Written by Anoushka Roy
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