Shares of FSN E-Commerce Ventures, the parent company of Nykaa, surged by 19 percent on August 21, reaching a 52-week high. This marked the largest intraday gain for the beauty retailer since November 2022, following a two-day losing streak.
The rally comes ahead of the company’s upcoming annual general meeting (AGM), scheduled for September 18. By 2:23 pm, Nykaa’s shares were trading 10 percent higher at Rs 212.20 on the National Stock Exchange. Year-to-date, Nykaa’s shares have risen by 24 percent, outperforming the Nifty index’s 13 percent gain. Over the past year, the stock has surged 61 percent, compared to Nifty’s 27 percent increase.
Nykaa recently reported a significant increase in net profit, posting Rs 13.6 crore for the quarter ending June 30, up 152 percent from the previous year’s Rs 5.4 crore. The company’s operating revenue also grew by 23 percent year-on-year to Rs 1,746 crore, despite slower growth in its physical retail segment due to elections and heat waves in North India.
Nykaa announced plans to increase its stake in Dot & Key, a leading cosmetics brand, from 51 percent to 90 percent by September 2024. The company will pay Rs 265.3 crore for this acquisition.
Dot & Key is one of Nykaa’s top-performing brands, generating Rs 198 crore in revenue for FY24. Nykaa is viewed as a profitable new-age company, with a significant market opportunity projected to reach Rs 25,000 crore by FY26.
