Nykaa Shares Pare Early 3% Rally, Trade Under 1% Higher in Monday’s Session

Mumbai, July 6: Shares of FSN E-Commerce Ventures (NYKAA) pared most of their gains and were trading nearly flat in Monday’s session after rallying as much as 3% intraday earlier in the day. Trading in the counter resumed on Monday after closing higher last week. Shares of Nykaa’s parent traded up Rs 2.45 or 0.79% at Rs 312.75 at the time of writing. 

At intraday highs, the stock rallied nearly 3.06% to touch levels not seen since early-June before falling back towards Rs 313.00 mark where buying interest supported the stock and held most losses. Trading in Nykaa is currently range-bound between a flat-to-low level gain and a mid-single digit percentage gain. 

NYKAA opened the session at Rs 313.60, touched a high of Rs 319.80 (intra-day high), Rs 311.70 (intraday low) and currently trades near Rs 312.75. The stock’s volume-weighted average price (VWAP) for the day is Rs 315.39 compared to last close at Rs 310.30. Here’s the NYKAA intraday chart. 

There are currently more sellers than buyers for NYKAA on Monday, with 57.25% of all orders or 7,79,601 shares on the offer, while the buy-side volume represents 42.75% or 5,82,198 shares, taking the total number of shares in the order book to just over 13.6 lakh shares. The current bid being placed by buyers is in the range of Rs 312.55 to Rs 312.75, while the current ask being placed by sellers is Rs 312.90 to Rs 313.10. 

Weekly Trend 

Last week, Nykaa began by moving up from near Rs 304.00 on June 29 to about Rs 312.00 on June 30, before falling back towards Rs 308.00 on July 1. It moved up again to hit a fresh weekly high of near Rs 314.00 on July 2, before falling again towards Rs 304.00 where it closed on July 3. 

The stock has already moved above last week’s range at Monday’s intraday high of Rs 319.80 and is currently trading closer to its previous close despite paring most of its intraday gains. It will be interesting to see if the stock can hold onto its strongest gains as it begins the new week on a higher note. The stock struggled to do so through the last five-session stretch. 

FSN E-Commerce Ventures Sees Revenue Growing Near 30% in Q1 

In a filing to the stock exchanges on Monday, FSN E-Commerce Ventures said consolidated gross merchandise value and net sales value growth will be in the “early 30s” while consolidated net revenue growth would accelerate to “just about 30 per cent” that stands among the highest during recent quarters. 

The growth during the quarter will be led primarily by the strong momentum in Beauty vertical, which is expected to clock net sales value and net revenue growth in the “late 20s,” the company said. 

“The Fashion vertical is expected to report net sales value growth in mid-50s and net revenue growth inching closer to 50 per cent, the highest in many quarters,” it added. 

Lower funnel leakages, along with a broader brand assortment and recent marketing spends helped improve gross merchandise value to net sales value funnel, said the company statement. This aided in robust new customer acquisition across verticals, it added. 

Source: NSE quote data; FSN E-Commerce Ventures business update