Better Days has come for Nykaa, long term Growth story started!!

2023년 11월 19일

Hello Traders & Investor,

Better day's has come for Nykaa, Earlier stock was in highly downtrend it was making lower lows and lower highs pattern but now there is no more lower lows on chart and it has given a wedge pattern breakout in yesterday session. Now this stock is ready to fly in blue sky. This is definitely giving a best enty for short term as well as long term. FSN E-commerce Ventures Ltd. (FSNEV) popularly known as "Nykaa" is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it.
Price is above 200-EMA and MACD is already given bullish crossover on chart. this is a clear indication that buyers are taking control on it.

KEY POINTS
Leading Digital Company:-
Nykaa is the largest specialty beauty and personal care platform in India in terms of value of products sold in FY21 and one of the fastest growing fashion platforms in India based on growth in GMV. It has the highest average order value (AOV) among leading online beauty and personal care platforms in India.

Business segments:-

A) Nykaa - Beauty and Personal care (90% of the revenue) The company offers 2,96,122 SKUs from 3,118 global and domestic brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories online beauty and personal care platforms in India.

Apart from the tie-ups with several suppliers, the company also has its own brands such as “Nykaa Cosmetics”, “Nykaa Naturals” and “Kay Beauty”.

** Business Model:-** The segment operates based on the ‘’ Inventory led model’’ where the company procures products in bulk and stores them at their warehouse and sells them upon receiving orders from its customers.
B) Nykaa Fashion:- Apparel and Accessories (9% of the revenue)**
The segment was only launched in 2018 and now it has 1,553 brands and more than 4.3 million SKUs with fashion products across five divisions: women, men, kids, tech and home.

**Business Model:-** This segment has different operating models such as sale or return (SOR), marketplace and just-in-time (JIT) inventory model.

Diverse Portfolio of Owned Brands:-
The Co. has a portfolio of 15 owned brands. During FY22, the Co. introduced five additional owned brands namely- Dot & Key, Nykaa SkinRx, Pipa Bella, Gajra Gang, and IYKYK.

Acquisitions:-
During FY22, the company’s wholly owned subsidiary ‘Nykaa Fashion Private Limited’ acquired the brand ‘KICA’ for a consideration of up to Rs. 45.1 million.
In April 2022, the Co. acquired 18.5% stake in Earth Rhythm Private Limited and 60% stake in Nudge Wellness Private Limited.

Market Cap
₹ 47,854 Cr.
Current Price
₹ 168
High / Low
₹ 192 / 114
Stock P/E
2,440
Book Value
₹ 4.88
Dividend Yield
0.00 %
ROCE
5.52 %
ROE
1.42 %
Face Value
₹ 1.00
Debt
₹ 966 Cr.
EPS
₹ 0.07
PEG Ratio
115
Promoter holding
52.3 %
Intrinsic Value
₹ 5.26
Pledged percentage
0.00 %
EVEBITDA
146
Change in Prom Hold
-0.02 %
Profit Var 5Yrs
21.2 %
Sales growth 5Years
55.0 %
Return over 5years
%

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