Nykaa Q3 update out. Is it wise to buy Nykaa shares ahead of Q3FY25 results? | Stock Market News

Nykaa share price: After the announcement of a substantial Q3 update for the financial year 2024-25, Nykaa share price opened with an upside gap on Monday and touched an intraday high of ₹176.60 apiece within a few minutes of the stock market’s Opening Bell. Continuing the impressive growth backed by substantial revenue expansion, FSN E-Commerce Ventures Ltd, aka Nykaa, reported a substantial Q3 update for the current financial on Sunday. The Fashion vertical is expected to deliver Net Revenue growth of around 20%. In contrast, NSV growth is likely around the low to mid-teens, indicating strong content, marketing and service-related income growth.

According to stock market experts, Nykaa’s share price may continue to ascend northward and climb to ₹185 apiece soon. They advised Nykaa shareholders to hold the scrip until Nykaa Q3 results 2024-25 are announced. They also advised fresh investors to buy Nykaa shares for the short-term target of ₹185 apiece.

Nykaa Q3 update for FY25

Speaking on Nykaa’s Q3 update for the current financial year, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “Nykaa continues to deliver impressive growth, with revenue expansion outpacing consolidated Gross Merchandise Value (GMV), signalling better GMV-to-net-revenue conversion. The beauty vertical remains the key driver, with GMV projected to grow in the “low thirties” and net revenue likely surpassing “mid-twenties,” fueled by strong performance across e-commerce, retail stores, owned brands, and eB2B distribution.”

“Superstore by Nykaa,” the company’s eB2B initiative, now accounts for 8% of beauty GMV, up from 7% a year ago. It serves 2.6 lakh retailers across 1,100+ cities, highlighting its growing footprint.

“In the Fashion division, net revenue is set to grow by 20%, with Net Sales Value (NSV) increasing in the low-to-mid teens. This reflects consistent growth in content, marketing, and service-related income. Nykaa’s robust performance across verticals underscores its strong market positioning and ability to leverage diverse growth opportunities effectively,” said Jain.

Nykaa share price target

Advising buy-on-dips strategy on Nykaa shares, Mahesh M Ojha, AVP — Research at Hensex Securities, said, “Nykaa shares have made a strong base at ₹166 to ₹168 range. The fashion stock faces a hurdle at ₹175 on the upper side. Nykaa’s share price may soon touch ₹185 apiece upon breaking above this hurdle. So, Nykaa shareholders are advised to hold the scrip until Nykaa Q3 results 2024 is announced. The stock may touch ₹185 ahead of the third quarter results of the fashion brand.”

Nykaa (FSN E-Commerce Ventures Limited and its subsidiaries) witnessed a strong performance in Q3 FY2025, with consolidated Net Revenue growth likely to be higher than mid-twenties. This is higher than the consolidated GMV growth for the same period, indicating a positive trend in GMV to Net Revenue translation.

Nykaa’s vertical beauty growth has accelerated compared to previous quarters, with net revenue growth higher than in the mid-twenties. The GMV growth for the beauty vertical is expected to be in the low thirties, indicating strong momentum in all of Nykaa’s beauty businesses – e-commerce platform, retail stores, owned brands and eB2B distribution. Customer acquisition at Nykaa continues to accelerate. The eB2B distribution business –Superstore by Nykaa, which accounts for 8% of beauty vertical’s GMV (vs 7% a year ago), continues to witness rapid expansion and now services around 260,000 transacting retailers across 1,100+ cities.

The Fashion vertical is expected to deliver Net Revenue growth of around 20%. In contrast, NSV growth is likely around the low to mid-teens, indicating continuing strong growth in content, marketing, and service-related income. Online fashion demand continues subdued, but we remain optimistic about the long-term growth opportunity.

Mahesh M Ojha suggested to fresh investors, “Fresh investors can buy the scrip at the current market price and maintain a buy-on-dips strategy until the stock is above ₹166. The stock becomes highly bullish once it breaks above the ₹185 apiece mark.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.