Nykaa share reverses trend, zooms over 7% to hit one-week high

Nykaa shares jumped over a one-week high of Rs 134.2 apiece on Tuesday after gaining more than 7.5 per cent on the BSE intraday. The stock of FSN E-Commerce Ventures – the parent company of cosmetics-to-fashion retailer Nykaa – has corrected over 14 per cent in January 2023 so far.

Incorporated in 2012, Nykaa (FSN E-Commerce) has emerged as one of India’s leading lifestyle-focused consumer technologies platforms. The company offers over 4,500 brands and over 4.6 million product SKUs (stock-keeping units) through its website and mobile applications.

New CFO

The beauty and personal care (BPC) e-commerce firm on Monday announced the appointment of P Ganesh as their Chief Financial Officer – a key managerial position – to further strengthen and boost Nykaa’s financial operations and long-term business strategies, effective from February 3, 2023.

The new CFO of Nykaa is a qualified Chartered Accountant, Cost and Management Accountant and Company Secretary with over 27 years of diverse industry experience. He joins Nykaa from the TAFE Group and had been associated with Godrej Group, Glenmark Pharma, and Pidilite Industries.

What led to the drag?

The correction in Nykaa shares was mainly triggered by a block deal news, which was executed on January 11 at a price of Rs 148 a share - a discount of 4.5 per cent from January 10, closing price, and around 1.40 crore shares exchanged hands.

In the last one year, the stock was down over 54 per cent, while it is down 44 per cent in the last six months.

Brokerages View

Global brokerage firm CITI last week in a report maintained a Buy rating on Nykaa with a target price of Rs 276 per share. JM Financial too tagged a Buy rating with a target price of Rs 280 per share.