Midcap Stock Analysis: Buy, Hold, or Sell? (Up 19% YTD)
- shares of Nykaa, the fashion-to-beauty e-retailer, experienced a decline in trading Monday following the release of its fourth-quarter fiscal year 2025 (Q4FY25) results.
- During the day's trading, the stock reached a low of Rs 193.55, representing a loss of nearly 5% compared to the previous closing price.
- Nykaa's Q4FY25 results revealed a important increase in profit,which rose 2.9 times to Rs 20 crore, compared to Rs 7 crore in the same period last year.
Nykaa stock fell over 4% after Q4 results—is now the time to buy, hold, or sell? The e-retailer’s profit surged 2.9 times to Rs 20 crore, while revenue climbed 23.6% to Rs 2,062 crore, yet mixed brokerage opinions leave investors questioning the future. HSBC downgraded to “hold,” Jefferies still sees a “buy,” and other analysts offer varied takes on the beauty and fashion e-retailer’s financial trajectory. Dive into the key data points, including GMV growth and EBITDA figures, to understand the market’s reaction to Nykaa’s performance. news Directory 3 delivers the breaking changes as they happen. Will the fashion segment achieve profitability? Discover what’s next for Nykaa and its investors.
Nykaa Stock Falls After Q4 Results: What’s Next for the E-Retailer?
Updated June 2, 2025
shares of Nykaa, the fashion-to-beauty e-retailer, experienced a decline in trading Monday following the release of its fourth-quarter fiscal year 2025 (Q4FY25) results. At approximately 1:33 p.m. on the Bombay Stock Exchange (BSE), the company’s shares were trading at Rs 194.6 apiece, reflecting a decrease of over 4%.
During the day’s trading, the stock reached a low of Rs 193.55, representing a loss of nearly 5% compared to the previous closing price. The Nykaa stock‘s performance reflects investor reaction to the company’s latest financial figures.
Nykaa’s Q4FY25 results revealed a important increase in profit,which rose 2.9 times to Rs 20 crore, compared to Rs 7 crore in the same period last year. The company’s revenue also saw ample growth, climbing 23.6% to Rs 2,062 crore from Rs 1,668 crore. However, this topline figure was slightly below Zee Business research estimates of Rs 2,076 crore.
Furthermore, Nykaa reported a 43% increase in earnings before interest, taxes, depreciation and amortization (EBITDA), reaching Rs 133.2 crore in the March quarter, compared to Rs 93.3 crore in the corresponding quarter of the previous year. The company’s gross merchandise value (GMV) grew by 27%, with the beauty and fashion segments experiencing GMV growth of 31% and 18%, respectively.Both the beauty and personal care (BPC) and fashion GMV growth surpassed industry expectations of 25% and 12%, respectively, indicating strong performance in key segments of the beauty and fashion e-retailer.
Several brokerages have weighed in on Nykaa’s stock following the Q4 earnings report, offering varied perspectives on the company’s future prospects. HSBC downgraded the stock to “hold” from its previous “buy” rating,lowering the target price to Rs 200 from Rs 250. While noting continued growth in the beauty segment, HSBC pointed out a lack of clarity regarding the fashion business’s path to profitability. Jefferies reiterated a “buy” rating with a target price of Rs 240 per share. Nomura maintained a “neutral” view, raising the target price to Rs 216 from Rs 190, citing in-line BPC performance but continued weakness in the fashion segment. Macquarie maintained an “underperform” rating with a target of Rs 145, while Citi issued a “sell” call with a target of Rs 160 per share, highlighting in-line Q4 results but ongoing concerns about the fashion business’s growth and profitability. These varied assessments reflect the complex dynamics and uncertainties surrounding Nykaa’s financial performance and future outlook.
What’s next
The market will likely continue to watch Nykaa’s performance in the fashion segment and its progress toward profitability, and also overall trends in the beauty and personal care market.