Nykaa stock hits 52-week low: Here is why beauty brand's stock is tanking

Nykaa share: FSN E-Commerce Ventures Ltd (NSE: NYKAA) has hit a new 52-week-low of Rs 975.50 on Friday. The downtrends come ahead of the one-year post IPO lock-in period. Nykaa made its Dalal Street debut on November 10. There has been a spurt in volume of over 2.53 times today.

On Friday, Nykaa stock opened at Rs 1,050.00 and hit the day’s low at Rs 975.50 and the highs at Rs 1,055. At 1:06 am, the stock price was quoted at Rs 999 on NSE.

Here is why beauty brand's stock is tanking

Nykaa share price tumbled to hit the day’s low at Rs 975.50, this comes ahead of the one-year post IPO lock-in period. It ends next month. The selling pressure is usually seen whenever the locking period meant for the IPO anchor is near or about to end. 

On Thursday as well, the beauty brand had hit an all-time 52-week-low — the price of Rs 1041.00.  

Nykaa's results of this quarter are yet to be declared, a board meeting is scheduled on November 1, for the same.

"...meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, November 01, 2022 inter-alia to consider and approve the Unaudited Standalone and Consolidated Financial Results of the Company for the quarter and half year ended September 30, 2022 along with the limited review report of the auditors for the corresponding period..," the company said in an exchange filing.

Nykaa stock has tanked around 52 per cent so far this year.  To put into perspective, the stock was priced at Rs 2086.25 apiece on January 3 earlier this year and is now trading over Rs 1000 levels.

At today's share price levels, the Nykaa market cap is at Rs 47372 crore, as per the NSE.

Sensex was trading at 59,978.57, up by over 220 points or 0.37 per cent at 9:24 am and Nifty50 was trading at 17,794.75, higher by 57.80 points or 0.33 per cent in early morning trade.

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