Nykaa inches higher from record low, halts 5-day losing streak. Here's what analysts say

Nykaa shares halted a five-day losing streak on Thursday following a series of record lows. The stock of FSN E-Commerce Ventures – the parent company of cosmetics-to-fashion retailer

Nykaa – gained to as high as Rs 133.1 apiece on BSE in intraday trade on Thursday, rising by Rs 4.1 or 3.2 per cent from its previous close. On Wednesday, Nykaa shares hit an all-time low of Rs 123.3 apiece.

Earlier in the day, Citi maintained a 'buy' rating on Nykaa with a target price of Rs 276 per share -- implying an upside potential of 114 per cent from the previous close.

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“We expect overall gross merchandise value to grow by 29 per cent year-on-year (YoY) in the October-December quarter of this fiscal, led by fashion at 44 per cent YoY, beauty and personal care (BPC) at 18 per cent YoY, and new initiatives," said Abhishek Kumar of JM Financial.

According to Kumar, Nykaa's revenue could grow 26 per cent on a year-on-year basis in the December quarter on the back of festive season growth in the BPC and fashion segments, and continued penetration in newer geographies of its new initiatives.

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The brokerage expects the company's EBITDA margin to improve by 21 basis points in the quarter ended December 2022 compared with the year-ago period.

JM Financial expects Nykaa shares to grow to Rs 280 apiece -- more than double from the current levels.

Nykaa shares: Past performance

Nykaa shares have lost almost 17 per cent of their value so far this month. The stock has dropped more than 61 per cent in the last one year, a period in which the Nifty50 benchmark has risen one per cent.

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Nykaa shareholding change

Nykaa promoters brought down their holdings to 52.34 per cent in the October-December period from 52.38 per cent, according to stock analysis portal Trendlyne.

FIIs increased their holdings to 11.06 per cent in the three-month period from 6.57 per cent. Domestic institutional investors raised their holdings to 17.41 per cent from 9.58 per cent. Mutual funds have increased holdings from 2.04 per cent to 4.06 per cent.