Nykaa stock skyrockets 19%, clocks biggest single-day gain in nearly 2 years

In the 12 months gone by, Nykaa stock has rallied 61 percent compared to 27 percent rise in Nifty.

Shares of Nykaa parent FSN E-Commerce Ventures snapped a two-day losing streak to surge as much as 19 percent to hit a 52-week high on August 21. Today's sharp rally marked the biggest intraday gain for the direct-to-consumer (D2C) online beauty retailer since November 2022.

The company recently informed that its annual general meeting (AGM) is scheduled to be held on September 18.

At 2:23 pm, Nykaa shares were trading 10 percent higher at Rs 212.20 on the National Stock Exchange (NSE).

So far this year, Nykaa shares have rallied 24 percent, beating benchmark Nifty's returns of around 13 percent during this period. In the 12 months gone by, the counter has rallied 61 percent compared to 27 percent rise in Nifty.

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Nykaa reported a net profit of Rs 13.6 crore in the quarter ended June 30, up 152 percent from Rs 5.4 crore recorded in the year-ago period. The Falguni Nayar-led company's operating revenue rose 23 percent YoY to Rs 1,746 crore during this period.

The strong performance was despite relatively slower growth in its physical retail business, which was impacted by elections as well as heat waves across North India.

The company informed that it is increasing its stake in Dot & Key, a cosmetics company already under its fold. It holds 51 percent of the company but will acquire another 39 percent from promoters of the firm and increase its shareholding to 90 percent by end of September 30, 2024.

It will pay Rs 265.3 crore for the transaction, filings showed. Dot & Key is among the company's top performing brands and generated a revenue of Rs 198 crore in FY24. Nykaa is one of the few profitable new age companies, with a significant market opportunity in FY26 at Rs 25,000 crore - 3x potential, according to Nuvama note.

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