Nykaa Stock Price Today: Shares of Nykaa’s parent company FSN E-Commerce Ventures fell up to 2 per cent on Tuesday. As investors continued to dump Nykaa or FSN E-commerce Ventures ahead of the mandatory lock-in expiry date for pre-IPO investors on November 10, the stock was down 2 per cent at Rs 1,120.25 at the day’s low.
Among all the new-age stocks recently listed on Indian stock exchanges, Nykaa was one of the best performers as it nearly doubled on the day of listing in November last year.
JM Financial believes that around 67 per cent or 319 million shares are likely to open for trading on the day of expiry. Steadview Capital Mauritius Limited, TPG Growth IV SF Pte. Ltd., Lighthouse India Fund III will be eligible to sell their stake along with HNIs like Harinderpal Singh Banga, Narottam Sekhsaria and Sunil Kant Munjal.
If Nykaa follows Zomato’s script, the shares may fall further. Shares of food delivery platform Zomato were down over 13 per cent on July 25, as 78 per cent of its shares came out of the mandatory one-year lock-in post IPO.
Nykaa Stock: Should You Buy a Dip?
Meanwhile, JM Financial remains bullish on the company. The brokerage said, “Nykaa’s current market value still implies a stronger valuation than most traditional companies, but it is not a factor in the seed of growth that the firm is investing in the fashion and e-B2B segments. “
It has given a buy rating on the stock with a target price of Rs 1,780.
ICICI Securities has a hold rating of Rs 1,250 with a target price of Rs. “Investing in a differentiated value proposition of content, duration, and convenience is delivering results. We model revenue and core profit CAGR (compound annual growth rate) of 42 per cent and 90 per cent respectively in FY 2012-FY 24,” it said.
Global brokerage firm Nomura, which recently launched coverage on the stock with a target price of Rs 1,365, said the risk-reward is quite favorable for long-term investors, with the stock likely to double over the next five years. .
“It is quite unique compared to most online companies due to its strong focus on curating brands and helping customers along their discovery journey. Brands see it as a key partner in educating customers and driving adoption of premium products,” Nomura said.
Earlier this month, Nykaa announced that its board has approved the issuance of bonus equity shares of the company in the ratio of 1:5, i.e. the company will issue a bonus of 5 shares for every 1 share as on the record date . The Company has fixed Thursday, November 03, 2022, as the record date for the purpose of determining the eligible members for Bonus Equity Shares.
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