Nykaa shares trade muted after Kotak downgrades to 'sell', sees 10% downside

FSN E-Commerce Venture shares have gained around 44 percent, outperforming the benchmark Nifty 50 index.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Shares of FSN E-Commerce Ventures, parent of beauty and personal care e-commerce giant Nykaa, traded with cuts in the early session on September 12, after Kotak Institutional Equites downgraded its rating on the firm.

The sharp-run up in the stock price, surging 34 percent over the past three months, drives a downgrade in the rating from 'add' to 'sell', said Kotak Institutional Equities. The brokerage assigned a target price of Rs 190, implying a downside of 10 percent.

At 10.30 am, Nykaa shares were quoting Rs 209.7 on the NSE, lower by a percent compared to the previous session's closing price.

Follow our live blog to catch all the updates

Nykaa’s wider assortment, content-based marketing and increasing  personalization should help it counter the increasing assortment and city reach of quick-commerce companies.

To deliver quicker, Nykaa may witness higher fulfillment cost. Even quicker deliveries to customers will require a re-alignment of warehousing infrastructure and a higher proportion of split shipments, which may result in a higher fulfillment cost, said Kotak.

However, Nykaa's portal remains unmatched from a discovery perspective, said Kotak. The brokerage expects Nykaa to continue to add to its already large SKU count,  curate offerings
better for customers, particularly in categories where product assortment is particularly wide and utilize a much longer customer history to offer superior recommendations and content.

Over the past year, FSN E-Commerce Venture shares have gained around 44 percent, outperforming the benchmark Nifty 50 index that has gained around 25 percent during the same time period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.