Nykaa's share price falls despite strong Q2 update; check details here

Shares of FSN E-Commerce Ventures, parent of e-commerce brand Nykaa dropped as much as 2.65 per cent a piece on the BSE in Tuesday’s intraday trade. 

The stock price dipped despite Nykaa reporting a strong update on its July-September financial performance for the financial year 2024-25 (Q2FY25).

The company said that its beauty vertical has delivered a robust net revenue as well as net sales value (NSV) growth of mid-twenties, with GMV growth even higher. 

“Strong overall performance was seen across omnichannel retail business, owned brands as well as eB2B distribution business, ahead of the festive season. Dot & Key, a new age skincare brand, continues to experience rapid growth, with Nykaa expanding ownership to 90 per cent at the beginning of this financial year,” Nykaa said in its Q2 update. 

 

Meanwhile, the fashion vertical’s NSV growth is seen at around early teens. Further, the acquisition of LBB, Nykaa’s content platform business, continues to perform well, delivering high growth taking the overall vertical’s revenue growth to early twenties for this quarter, the company said. 

Nykaa, founded by banker-turned-businesswoman Falguni Nayar and backed by private equity firm TPG Group, is involved in the manufacturing, selling, and distribution of beauty, wellness, fitness, personal care, health care, skin care, and hair care products. The company operates across various online platforms—including e-commerce, m-commerce, and internet/intranet—as well as through offline stores and stalls.

At 9:55 AM, the stock price of the company was down 1.21 per cent at Rs 191.60 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.39 per cent to 81,364.82 level. 

The company has a total market capitalization of Rs 55,143.91crore. Its shares are trading at price to earnings valuation of 369.51 times with an earning per share of Rs 0.52. 

Nykaa share price has been in sync with the market performance as it surged 12.1 per cent year to date, while gaining 28.8 per cent in the last one year. In comparison BSE Sensex has risen 12.5 per cent year to date and 23.2 per cent in a year.