Shares of FSN E-Commerce Ventures Ltd., the parent company of beauty and personal care brand Nykaa, fell more than 3% from day's high on profit booking.
The stock has gained nearly 20% over the last 12 months.Nykaa on Friday (June 14) held an investor meet, laying down growth plans for the various segments of its businesses.
Remember, this number was less than one-fifth just about four years in FY21.
I would not be buying at current levels.
"Nykaa had made its stock market debut back in 2021 at an IPO price of ₹1,125.Shares of Nykaa are off the day's high and are trading 0.63% lower at ₹165.97.
Shares of FSN E-Commerce Ventures Ltd., the parent company of beauty and personal care brand Nykaa, fell more than 3% from day's high on profit booking. The stock has gained nearly 20% over the last 12 months.Nykaa on Friday (June 14) held an investor meet, laying down growth plans for the various segments of its businesses. For the eB2B business, the new-age company expects a 2,000 basis points EBITDA margin improvement by the end of the financial year 2026, compared to FY24.For its beauty and personal care (BPC) gross merchandise value (GMV), Nykaa expects the growth to be compounding in mid-late 20s% for the next four years (CAGR for FY24 to FY28).The retail GMV growth is expected at 40% CAGR over the next four years.The street was a little worried about the margins. Nykaa said its FY28 margin is seen in-line with 25.5% in the financial year 2024.In the fashion segment, Nykaa is expecting 2.5-3 times increase in net sales values in the next three years.The company sees about 150 - 200 basis points improvement in gross margin over the next three years, and is also targeting 1300-1600 basis points EBITDA margin improvement in the next three years.For the global brands that Nykaa sells, the company expects the business to triple from current levels by FY28. Remember, this number was less than one-fifth just about four years in FY21. So from that levels to FY28, the growth is seen at 15 times.For Nykaa's Super Store, the big growth driver for them, they have FY25 targets of improving gross margin, reducing fulfillment costs, and ambition to reach 9 times of FY24 GMV and 3-5% EBITDA in the medium term.Market Expert Shahina Mukadam believes there is no rush to buy the Nykaa stock. "The main issue is the valuations. Of course, today is their meet and they are giving very aggressive targets, but with a $47,000 crore market cap, I think there is a long way before valuations, at least to me, will start looking attractive. I would not be buying at current levels."Nykaa had made its stock market debut back in 2021 at an IPO price of ₹1,125.Shares of Nykaa are off the day's high and are trading 0.63% lower at ₹165.97.
