Shares of Nykaa have climbed in morning deals after announcing a more than 33 per cent rise in consolidated net profit in Q1FY23. Shares of FSN E-commerce Ventures (Nykaa) opened higher today and moved to their intraday high. At 1,473.65 levels, a rise of nearly 2 per cent from Friday’s close. However, the stock is still down about 44 percent from its lifetime highs. 2,573.70 on NSE. Therefore, situational investors who are looking for a discounted buy after the recent selloff may feel attracted to this internet stock.
According to Share Market According to experts, the concept of Nykaa’s business model is ‘monopoly’ and in view of rising interest rates, acquisitions will become difficult and hence the stock is expected to feel the pinch in the short to medium term. He said the stock could go up In the short to medium term, buying at 1250 every level and hence in the current bullish momentum should be avoided.
Speaking on Nykaa share price outlook, Ravi Singhal, CEO, GCL Securities said, “The business concept of Nykaa and its peers is monopoly. They tend to acquire smaller companies that emerge as a threat to their business. Due to rising interest rate In view, acquisitions by Nykaa and other internet-based companies are expected to be slow. Hence, the stock is expected to remain bearish in the short to medium term.”
Echoing Ravi Singhal’s views, Sumeet Bagdia, Executive Director, Choice Broking said, “Nayaka shares are looking weak on the chart pattern and profit booking can start anytime. Hence, one should refrain from taking any fresh positions. And those who have bought at low. Levels are advised to book profit and exit. Stock may go up from 1,300 1,250 each level in the short term.”
Announcing Q1FY23 results on Saturday, Nykaa reports nearly 33 per cent growth in consolidated net profit Against profit of Rs 4.55 crore in Q1FY23 3.42 crore in Q1FY22. The consolidated revenue of the company was There is an increase of 40.57 percent from the recently ended Rs 1,148.4 crore in the first quarter of the financial year 2022-23 816.99 crore in the first quarter of the financial year 2021-22.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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