JM Financial raises Nykaa's target price to Rs 250 on growth prospects and profitability improvements
JM Financial has reiterated its 'Buy' rating on Nykaa and revised its target price to Rs 250, suggesting an upside potential of 15% from the previous day's closing price of Rs 217. The revision is driven by Nykaa’s robust performance in FY24 and its strategic positioning in key market segments.
JM Financial states, “Nykaa’s strong performance in its FY24 Annual Report and its strategic positioning across key market segments provide a solid foundation for future growth.” The brokerage’s optimism is based on Nykaa's robust market share and its potential to benefit from rising consumer spending in the beauty and fashion segments.
Nykaa's FY24 Annual Report highlighted significant developments, including the company’s strong growth trajectory and profitability improvements. The company expects a mid-to-late twenties growth in its beauty and personal care (BPC) segment, driven by rising consumer spending as India’s GDP per capita increases. With India emerging as a key market for global brands, Nykaa is well-positioned to capitalize on this trend.
In the fashion segment, Nykaa Fashion has carved out a niche with a 20% market share of online premium fashion. The company aims to expand its store count and improve profitability, targeting a significant increase in net sales value (NSV) over the next three years.
The brokerage remains bullish on Nykaa's prospects, emphasizing that the company's strong market position and strategic initiatives are likely to drive continued growth.
On Thursday, at 10:57 am, the scrip was
