Nykaa, the leading beauty and wellness e-commerce platform, has reported an impressive 50 percent year-on-year surge in net profit for Q2 FY24. Despite missing estimates, the company received bullish recommendations from foreign brokerages, advocating a ‘buy’ rating for the stock due to its robust merchandising strategies and substantial user growth.
In early trade on November 7, Nykaa’s share price witnessed a nearly 4 percent rise. By 9:15 am, the stock was trading at Rs 152.55 on the National Stock Exchange (NSE). While there were some areas that fell short, the company exhibited notable improvements in growth and contribution margins within the fashion segment. The Beauty and Personal Care (BPC) segment experienced a significant uptick, with a 23 percent increase in Gross Merchandise Value (GMV), while the contribution margin remained stable at 26.4 percent.
One promising aspect lies in the anticipation of heightened growth driven by the festive season, which has been shifted to the third quarter. This strategic move is expected to bolster Nykaa’s performance further.
At the time of reporting, Nykaa’s shares were trading 2.44 percent higher at ₹150.95, indicating investor confidence in the company’s future prospects and its ability to capitalize on evolving market dynamics.
