Nykaa’s stock fell nearly 2% after Bank of America (BofA) downgraded the beauty and fashion retailer from “Neutral” to “Underperform.” The brokerage also slashed its target price from ₹225 to ₹150, signaling an 11.8% potential downside from the current ₹170 level.
As per the brokerage, key reasons for the downgrade include slower-than-expected margin growth, limited progress in quick commerce, and subdued performance in the apparel sector. Rising competition, including Shein’s market re-entry, further challenges Nykaa’s revenue growth trajectory.
As of 9:36 am, Nykaa shares were trading 1.39% lower at Rs 167.94 on the NSE.
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