Nykaa shares jump over 4% post Q2 earnings? Should you buy stock?
brokerages took a favourable view on the stock following its September quarter earnings.
Among them were Morgan Stanley which remains overweight on the counter relying on improvements being seen in its business. In the domestic pack, Nuvama maintained a buy view while Kotak Institutional Equities recommended an 'Add'.
On Monday, Nykaa reported a 8% year-on-year (YoY) growth in its consolidated net profit at Rs 5.4 crore for the quarter ended June 2023.
It was Rs 5 crore in the year-ago period. However, the profit attributable to equity shareholders of the parent fell 27% year-on-year to Rs 3.3 crore.
Revenue from operations during the first quarter rose 24% to Rs 1,422 crore, as against Rs 1,148 crore in the same quarter of last year.
This is what brokerages recommended:
Morgan Stanley: Overweight | Target: Rs 173
Morgan Stanley has an Overweight stance on Nykaa shares for a price target of Rs 173.
In a post earnings stock review, the brokerage said that the fashion business is showing some progress but steady trends are still awaited. The company sustained growth and margins in its beauty & personal care (BPC) segment.
Nuvama: Buy | Target: Rs 187
Nuvama has a buy view on the counter and the brokerage rolled-over its DCF based target price to September 2024E yields at a revised target price of Rs 187 or Rs 180 earlier.
