The revenue from operations for the reporting quarter stood at Rs 1,746.11 crore, which was up 23% from Rs 1,421.82 crore reported in the corresponding quarter of the previous financial year.
The company’s board of directors also approved the further acquisition of a 39% stake in Dot & Key Wellness from the promoters/existing shareholders as per the pre-agreed terms in shareholder agreements of September 19, 2021, and January 9, 2024, the company filing said.
Additionally, the board approved further investment in Earth Rhythm through a combination of primary and secondary, adding Earth Rhythm as a subsidiary of the company.
Here is how brokerages view the Q1 update:
Nuvama: Buy| Target price: Rs 220
Nuvama maintained its buy rating on Nykaa with a target price of Rs 220.FSN E-Commerce (Nykaa) reported an in-line Q1FY25 performance. Revenue at Rs 1750 crore (+22.8% YoY), which is in line with the consensus. Nykaa has delivered strong growth in BPC while Fashion GMV growth missed expectations due to a slowdown in the underlying market. Margin improved YoY largely due to Fashion and B2B.Also read: SpiceJet’s Ajay Singh to dilute stake by over 10% to raise Rs 3,000 crore amid financial struggles
Investec: Buy| Target price: Rs 205
Investec retained its buy rating on Nykaa but hiked the target price to Rs 205 from Rs 203.
Higher margin expansions are still awaited. Focus is on driving new customer growth and metrics are improving in the fashion segment. Investec believes Nykaa’s performance is trending in the right direction though margin 5900 improvement and expects that the revenue and EBITDA growth trends to accelerate from the current quarter.
JP Morgan: Underweight| Target price: Rs 138
JP Morgan has maintained an underweight rating on the stock with a target price of Rs 138.
For the beauty segment, higher marketing spends weigh on margins while in fashion, revenue growth was weak and the margin expansion came through.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
