NYKAA

Shares of FSN E-Commerce Ventures Ltd (Nykaa) fell in early trade on Wednesday despite the company reporting a sharp year-on-year (YoY) rise in its June-quarter earnings and receiving positive commentary from leading brokerages. Nykaa shares were trading 2.4% lower at ₹334.30 in early deals. The stock had closed 0.7% lower on Tuesday ahead of the earnings announcement. Despite the decline, the stock has gained 28.9% so far this year, outperforming the Nifty 50, which has fallen 5.9% during the same period. The company's market capitalisation stands at ₹46,668 crore. Analyst reiterated its Outperform rating on the stock with a target price of ₹376 per share. The brokerage noted that revenue grew 29% YoY, while EBITDA margin came in at 8.5%. EBITDA exceeded its estimates by 6%. CLSA also highlighted a 53% increase in fashion NSV, 29% growth in beauty NSV, and 40% growth in the company's own brands, which supported margin expansion. Nykaa reported a strong performance for the June quarter, with net profit more than tripling to ₹79.7 crore from ₹24.4 crore in the year-ago period. Revenue from operations rose 29.1% YoY to ₹2,782 crore, while EBITDA jumped 67.8% to ₹236 crore. EBITDA margin expanded to 8.5% from 6.5% in the corresponding quarter last year.