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Nykaa shares have ascended in early morning deals after announcing over 33 per cent rise in consolidate net profit in Q1FY23. Shares of FSN E-Commerce Ventures (Nykaa) today opened upside and went on to hit its intraday high of ₹1,473.65 apiece levels, logging near 2 per cent rise from its Friday close. However, the stock is still around 44 per cent lower from its life-time high of ₹2,573.70 on NSE. So, those positional investors who are looking for discounted buying after recent sell-off, they ight feel attracted to this internet stock.
According to stock market experts, concept of Nykaa’s business model is ‘monopoly’ and in the wake of rising interest rates, acqu7isition will become difficult and hence the stock is expected to feel the pinch in short to medium term. They said that the stock may go up to ₹1250 apiece levels in short to medium term and hence one should avoid taking any buy position in the scrip in current rally.
Speaking on Nykaa share price outlook, Ravi Singhal, CEO at GCL Securities said, “Business concept of Nykaa and its peers is monop0oly. They acquire small companies emerging as threat to their business. In the wake of rising interest rate, acquisition by Nykaa and other internet-based companies is expected to remain on the slower side. So, the stock is expected to remain in bearish mode in short to medium term.”
Echoing with Ravi Singhal’s views, Sumeet Bagadia, Executive Director at Choice Broking said, “Nykaa shares are looking weak on chart pattern and profit-booking may trigger at any time. So, one should avoid taking any fresh position and those who bought at lower levels are advised to book profit and exit. The stock may go up to ₹1,300 to ₹1,250 apiece levels in short term.”
While announcing Q1FY23 results on Saturday, Nykaa reported around 33 per cent rise in consolidated net profit to ₹4.55 crore in Q1FY23 against a profit of ₹3.42 crore in Q1FY22. Consolidated revenue of the company stood at ₹1,148.4 crore in recently ended first quarter of the financial year 2022-23 rising by 40.57 per cent from ₹816.99 crore in Q1 of FY 2021-22.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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(This story has not been checked by Kashmir Bulletin and is auto-generated from other sources)
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