Nykaa Share Price: Nykaa share worth surged practically 5% on Tuesday’s commerce after the net magnificence and trend retailer posted 50 per cent leap in its consolidated internet revenue as in comparison with year-ago interval.

The firm reported a robust Q2FY24, with a notable restoration in trend development following a lacklustre Q1FY24, in line with analysts. In addition, analysts projected potential upside of as much as 40 per cent over the following 12 months for the new-age inventory.

The firm’s magnificence and private care enterprise grew by 19 per cent throughout the quarter, whereas the style enterprise, a comparatively smaller a part of the enterprise, grew by 32 per cent year-on-year.

According to Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One, Nykaa inventory costs witnessed a niche up opening publish that we’re not seeing any main traction, and worth presently buying and selling across the opening ranges.

“Overall we’re seeing robust volumes and as lengthy the bullish hole left immediately holds round 148 anticipate the upmove to proceed probably in direction of the 158 – 160 zone,” said Bhosale.

According to Nuvama Institutional Equities, beauty and personal care (BPC) could be better and fashion revived in Q2. Growth in BPC is steady, but performance is a little lacklustre as GM shrank; the brokerage attributes this to decreased ad income and more aggressive own-brand pricing. CFO is negative on inventory stocking for the upcoming festive season.

ICICI Securities said in its note that the stock has de-rated over the last year primarily due to concerns on the fashion segment and that the September quarter results show material improvement in contribution margin for the said segment.

The brokerage expects the stock is likely to re-rate in the near term, further aided by a strong festive season in the December quarter. It has raised its price target on Nykaa higher to Rs 185 from Rs 165.

Morgan Stanley has maintained its overweight rating on the stock with a price target of Rs 173. It believes that the shift in festive season will drive growth in the December quarter.

One of the four brokerages on the Street that expect shares of Nykaa to hit Rs 200 per share over the next 12 months is Jefferies. It said that strong user growth in both key segments aided the topline but the gross margin was lower due to higher discounts in the beauty and personal care (BPC) portfolio.

Shares of Nykaa are trading 2.1 per cent higher at Rs 150.40. The stock made an intraday high of Rs 154.8 on Tuesday and needs to trade above Rs 155.15 to turn positive for 2023.

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