As Nykaa shares make blockbuster debut, analysts upbeat on stock, see targets up to Rs 2,600

“Nykaa’s key strengths lie in its inventory-led business model for the BPC segment, which allows it to offer authentication for all its products and ensure availability and efficient distribution. The online BPC market in India is highly underpenetrated at just 8 percent, and growing at a very fast pace (60 percent p.a. over CY16-20). Given Nykaa's 35 percent market share in online BPC, we believe Nykaa is rightly placed to tap the high growth digital/online penetration in BPC/Fashion market."

"We like Nykaa given its leadership position in online BPC market, customer-centric approach, profitable tech platform and capital-efficient business model.”

Santosh Meena, Head of Research, Swastika Investmart:

"Nykaa has strong fundamentals. It is among the few profitable new-age businesses. It is a high-growth company and into the right business, where it may continue to grow in double digits for many years."

"We are expecting the upside momentum to continue for at least 1-2 days before the stock stabilises for some time because the valuation could be a concern after the big listing gain. However, the Rs 2,000 level could act as support in the near term. It may head towards Rs 2,100/2,200 levels even after the big opening."

Those who participated in the IPO for a listing gain can keep a stop loss at Rs 1,950. Aggressive investors are advised to hold this stock for the long term because it is one of the few stocks in new-age companies to own. It is difficult to buy after the big gain at the opening however fresh investors can accumulate in parts... Any correction towards Rs 1,800 can be used to add more."

Rahul Sharma, Co-Founder, Equity99:

"We are bullish on Nykaa shares and see them as a good bet for the long term. Investors might book some quantity considering the bumper listing premium and keep the remaining shares for the long term. Anyone who wishes to enter afresh should wait for declines to near Rs 1,900-1,850 levels, for a target of Rs 2,600 with a stop loss at Rs 1,650.

Manoj Dalmia, Founder and Director, Proficient Equities:

"The future scope of Nykaa appears to be good. Investors should hold Nykaa shares."

Ravi Singh, Head of Research and Vice President, ShareIndia:

"We advise investors to cover their 50 percent position at the current premium and hold the rest with a closing stop loss at Rs 1,850 for a target of Rs 2,500. Nykaa has strong fundamentals, so investors may hold their positions for a longer period."