Is Nykaa share going the Paytm way as stock tanks 67% from life high?

FSN E-Commerce Ventures Limited, owner of cosmetic brand Nykaa has been in news. Nykaa stock has fallen for four sessions in a row and is it following the footsteps of Paytm? Zee Business' Nupur Jainkunia brings this research report on this stock.

The stock traded with high volumes over the past two trading sessions while seeing corrections in last four trading sessions. The stock is trading at record low levels. The stock has corrected by over 12 per cent since 12 January and has fallen over 14 per cent in this year.  

The stock has corrected by over 67 per cent since hitting its peak of Rs 348.17 on 17 January 2022 while falling nearly 60 per cent since its listing on 10 November 2021.

The stock has been on a correction spree since the end of its lock-in period.  

Even now, 18 per cent of the holdings of anchor and investors could come on the block. 

Out of this 18 per cent, approximately 6 per cent is owned by Harindarpal Singh Banga (Founder, Chairman, and CEO of The Caravel Group Limited).

On Wednesday and Tuesday th stock was traded with high volume (Volumes are normally 40lk on an average basis, but yesterday it was over 1.1cr on NSE and now so far it has crossed over 2.53 cr on the back of a bulk deal of over 10 lakh shares.

Tha valuations are still expensive at 130xFy24e and 5x EV/sales.

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Paytm share price has fallen by nearly 70 per cent from the issue price of Rs 2,150. At current levels, the 1-year returns given by this negative 47 per cent as against (-) 2.1 per cent returned by broader market Nifty50. The underperformance is over 47 per cent during this period.