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Nykaa targets upper-mid and high-income customers with $10,000 annual income, who are brand conscious with high category awareness, Jefferies said in a June 18 note. “Rising e-commerce penetration, higher income levels and demographic shifts should drive a strong growth in online BPC and fashion,” the brokerage said.
Citing management, Nomura Holdings Inc. said the beauty and personal care industry in India is expected to record 29% CAGR, while the Indian fashion industry may clock a 27% CAGR over 2022-2023. “Nykaa plans to grow ahead of the market,” it said.
Shares of Nykaa’s parent company, FSN E-Commerce Ventures Ltd., rose 3.95% to Rs 150.05 apiece, compared to a 0.30% decline in the benchmark Nifty 50 as of 10:14 a.m.
The stock rose as much as 2.39% intraday. Total traded quantity so far in the day stood at 2.8 times the 30-day average.
Of the 22 analysts tracking the stock, 16 maintained ‘buy’, two suggested ‘hold’, while four analysts recommended ‘sell’. The consensus price target implies a potential upside of 23.4% over the next 12 months.
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