The stock of e-commerce beauty company Nykaa is trading more than 100 percent higher than its issue price. However, the company’s quarterly results have been weak and profits have declined by 96 percent.
Nykaa Stock Price News: E-commerce beauty company Nykaa had a great entry in the stock market last week. The company’s stock got listed at a premium of 78 per cent over its issue price. At the same time, now the stock has given more than double the return of the issue price. However, after a strong entry in the market, Nykaa has presented weak results. The company’s profit declined 96 per cent year-on-year to Rs 1.1 crore in the September quarter. On a quarterly basis also, profits have been weak by 69 per cent. However, experts are calling the long-term stock a profitable deal. He says that the company’s business model is better and further growth will be achieved. But new investors are advised to buy only on the downside.
what investors to do
Swastika Investmart Ltd. Head of Research Santosh Meena says that the fundamentals of the company are good, due to which the issue got a great response from the investors first, then there was a bang entry in the market too. He says that the company is making profit and the business model is good. It is a high growth oriented company and growth can remain in double digits for the next several years. Talking about the stock, the valuation is high since the listing. Therefore, the movement in the stock can remain stable for a few days. Investors are advised to hold this stock for a long period. It is one of the few stocks of companies with new age business, which should be kept in the portfolio.
He says that if you have not invested in the stock yet, then wait for some time. The current price is high. In such a situation, if the share gets corrected and comes around Rs 1800, then purchase can be done from here. The business model of the company is going to be liked and it can emerge as a big company in future.
Strong growth can be seen in the company
Sneha Poddar, AVP Retail Research, Motilal Oswal Financial Services, says that Nykaa is the largest specialty beauty and personal care (BPC) platform in India. It is the first company in its sector to be listed in the market, due to which the interest of the investors has been seen. It is one of the few companies with new age business, Jay is profitable. This will keep the interest of the investors. The online BPC market in India is highly underpenetrated and that is why it has huge potential for growth. In such a situation, Nykaa can show strong growth in the coming days.