Shares of FSN E-commerce (Nykaa) gained nearly 3.5 percent in the opening trade on the NSE on January 9, a day after the company announced its Q3 business update, driving the stock up 2 percent to close at at Rs 177.
At 9:20am on January 9, the stock was trading at Rs 182.05.
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In its Q3 business update, FSN E-commerce Ventures, the parent company behind the brand Nykaa, said: "Nykaa Fashion has witnessed strong growth in Q3 FY24, continuing the momentum from the previous quarter. Fashion vertical GMV (Gross Merchandise Value) for the quarter is expected to grow at around 40 percent, with NSV (Net Sales Value) growth expected in the low thirties on YoY basis. For Q3 FY24, at a consolidated level, we expect our NSV to grow in the mid-twenties and revenue to grow in the low-twenties on a YoY basis."
Also read: Nykaa parent FSN E-commerce rises 3.5% on positive Q3 business update
HSBC, which has a buy call on Nykaa, has raised the target price to Rs 250 per share on a robust beauty and personal care NSV and strong fashion NSV, despite a relatively weaker festive season. According to the brokerage, the company is well position to capture long-term value in BPC with its scale and leadership.
Nomura has retained a neutral call and target price of Rs 163 for the stock. "The Q3FY24 performance update indicates slower-than-expected growth in BPC (below long-term trends) but strong growth in fashion," the brokerage said.
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