Nykaa Jumps The Most In Over Two Weeks After Q4 Profit Surges More Than Fourfold

Shares of FSN E-Commerce Ventures Ltd., the parent of online beauty and fashion retailer Nykaa, rose over 4% on Thursday after its fourth-quarter profit jumped over fourfold.

The company's consolidated net profit increased 350% year-on-year to Rs 9 crore in the quarter ended March, according to an exchange filing. Analysts tracking by Bloomberg estimated the net profit at Rs 13.27 crore.

The annual revenue of Nykaa increased by about 24% to Rs 6,385.62 crore in the financial year 2023-24 from Rs 5,143.8 crore clocked during the preceding financial year.

Nykaa's gross merchandise value grew by 32% to Rs 3,217.2 crore on a year-on-year basis with the beauty and personal care segment accounting for 67% share, fashion (26%) and other segments contributing 7%.

Shares of Nykaa rose as much as 4.58% during the day, the most since May 7, to Rs 187.35 apiece on the NSE. It was trading 0.20% higher at Rs 179.5 apiece, compared to a 0.97% advance in the benchmark Nifty 50 as of 1:17 a.m.

The stock has risen 39.8% in the last 12 months and about 3.1% on a year-to-date basis. The total traded volume so far in the day stood at 2.9 times its 30-day average. The relative strength index was at 64.

Eleven out of the 23 analysts tracking the company have a 'buy' rating on the stock, seven recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 4.5%.