Posted on February 11, 2025, by Niftynews
Shares of Nykaa parent company FSN E-Commerce saw a notable surge of 3% on February 11, 2025, following the release of the company’s impressive Q3 earnings. The boost in Nykaa share price was fueled by the company’s strong net profit growth and revenue increase in the December quarter. Investors responded positively, helping the stock maintain an upward trajectory as Nykaa share price reached new highs in morning trades.
Nykaa Share Price Soars After Q3 Performance
Nykaa Q3 earnings for FY25 were a major catalyst for the Nykaa share price surge. On the BSE, FSN E-Commerce opened at ₹196.05, nearly 2% higher than its previous close of ₹190.95. Throughout the day, the Nykaa share price continued to climb, eventually hitting an intraday high of ₹198.30, a solid 4% increase. This increase in Nykaa share price was accompanied by a significant spike in trading volumes, signaling strong investor confidence in the company’s future performance.
Q3 Earnings Drive Strong Nykaa Share Price Growth
The company’s Q3 results revealed impressive growth across multiple metrics, which directly influenced the upward movement of Nykaa share price. Here are the key highlights from Nykaa Q3 earnings:
- Net Profit Surge: Nykaa’s net profit for the December quarter surged by 51% year-on-year, reaching ₹26.4 crore from ₹17.5 crore in Q3 of FY24.
- Revenue Growth: The company’s consolidated revenue grew by 27% year-on-year, totaling ₹2,267 crore. This is a significant increase from ₹1,789 crore reported in Q3 of the previous year and aligned with the company’s earlier projections.
- Core Beauty Segment Drives Growth: The strong revenue growth was largely driven by Nykaa’s core beauty and personal care segment, which saw accelerated growth compared to prior quarters. Nykaa’s gross merchandise value (GMV) for this segment exceeded expectations, with growth forecasted in the low thirties. The company’s multi-channel approach, including its e-commerce platform, retail stores, owned brands, and eB2B distribution, contributed significantly to this uptick.
The Surge in Nykaa Share Price: What Investors Are Saying
The strong Q3 earnings have undoubtedly boosted investor sentiment, as seen in the increase in Nykaa share price. The trading volume also saw a notable spike, with around 92 lakh shares being traded, surpassing the one-month average of 76 lakh shares. As a result, the Nykaa share price showed significant movement, increasing to ₹172.98 on the NSE by 10:09 AM.
Analysts have responded positively to Nykaa’s performance, with many seeing the results as a strong signal for future growth. Morgan Stanley forecasts a 29% compound annual growth rate (CAGR) for Nykaa from FY24 to FY27, driven by continued growth in the beauty segment. The firm’s analysts have emphasized the company’s technology edge and strong topline delivery, despite a challenging demand environment.
Analyst Outlook: Nykaa Share Price Poised for Continued Growth
The positive sentiment surrounding Nykaa share price is further reinforced by the bullish outlook from analysts. Morgan Stanley has maintained an ‘overweight’ stance on the company and set a target price of ₹200 for FSN E-Commerce shares. This target price reflects their confidence in the company’s ability to deliver strong growth, particularly in its beauty business.
With a 29% CAGR projected for the company’s beauty division, Nykaa share price has the potential to rise further as the company continues to expand across multiple channels. Nykaa e-commerce platform, retail presence, and owned brands are expected to play a central role in this growth.
Nykaa’s Multi-Channel Strategy Supports Continued Growth
One of the key drivers behind Nykaa share price growth is its multi-channel strategy, which continues to prove effective in expanding the company’s reach and driving revenue growth. Nykaa e-commerce platform remains a significant growth engine, providing customers with a wide range of products and services. Additionally, the company’s retail presence and owned brands are contributing to its expansion into new markets.
Nykaa’s eB2B distribution also plays a crucial role in increasing the company’s gross merchandise value (GMV), further driving Nykaa growth and solidifying its market position.
Conclusion: Nykaa Share Price Surges After Impressive Q3 Earnings
In conclusion, Nykaa share price saw a solid 3% increase following the release of its positive Q3 earnings for FY25. The company’s 51% rise in net profit and 27% revenue growth helped drive investor confidence, while its beauty segment continued to perform well across multiple channels. With a 29% CAGR forecast by Morgan Stanley, the Nykaa share price is expected to see continued growth, making it a stock to watch in the coming quarters.
