Nomura has maintained its neutral rating on Nykaa, forecasting a 4% upside from its current share price of Rs 194.55. The brokerage expects Nykaa to report a consolidated revenue growth of 26% year-on-year (y-o-y) for the second quarter of FY25, led primarily by the Beauty and Personal Care (BPC) segment. While the projected growth shows improvement, it remains below Nomura’s FY25 forecast of a 29% y-o-y revenue increase.
Nykaa’s EBITDA margin is expected to be around 6% in 2QFY25, reflecting a 50 basis point increase from the previous quarter. However, this still trails Nomura’s full-year estimate of 7.5% for FY25. The company’s Fashion vertical continues to face challenges, while BPC remains the key growth driver.
Nomura expects Nykaa’s share price to see a moderate 4% upside from its current level, with the target price set at Rs 203.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consider consulting with a financial advisor before making any investment decisions.
