FSN E-Commerce, the parent company of beauty and fashion retailer Nykaa, in a regulatory filing, reported the summary of the operating performance of the company and demand trends witnessed during the quarter ended September 30, 2023.
The fashion and beauty retailer reported robust performance defying slightly subdued discretionary consumption trends in the country due to a delayed festive season.
The beauty vertical of Nykaa continues to expand through multiple channels, including e-commerce, physical store expansion, and the growth of its own brands. During the quarter, Nykaa's BPC business Net Sales Value (NSV) is expected to grow by approximately 20% on a year-on-year basis.
The company also mentioned that the delayed commencement of the festive season this year, moving into October from September last year, impacted the second-quarter growth to some extent.
When it comes to the apparel business, the company optimised its core category mix and improved order volumes within the quarter. Fashion NSV for the quarter is expected to grow in the early thirties on a year-on-year basis.
At a consolidated level, Nykaa anticipates its Net Sales Value (NSV) to grow in the mid-twenties, and revenue to grow in the early twenties on a year-on-year basis for Q2 FY24.
What do brokerages have to say?
Global brokerage firm Jefferies has a 'Buy' rating on the shares of Nykaa with the target price at Rs 200, an upside of 37% from the current market price of Rs 146.
The brokerage firm in a note said: "Rising e-commerce penetration, higher income levels and demographic shifts should drive a strong growth in online BPC & Fashion,"
Shares of FSN E-Commerce are trading at Rs 150, up 2.3% from the previous close on the BSE.
(Edited by : Amrita)
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