Nykaa underperforms Zomato, Paytm in last 1 year! Is it still a good buy?
Live MintE-commerce stock FSN ECommerce Ventures has underperformed its competitive stocks Zomato and Paytm i the last 1 year. It further predicted that its fair value estimates for Nykaa's fashion business at different revenue CAGR and operating profit margin assumptions range between Rs 14 and Rs 75. In the September quarter, Nykaa posted a 344 percent year-on-year jump in its September quarter net profit at Rs 5.2 crore vs Rs 1 crore in the year-ago period. "During the quarter, we continued to demonstrate strong GMV growth with improvement in gross margin, efficiency in fulfillment and marketing cost lead to improvement in EBITDA margin YoY," Nykaa said in an exchange filing. Its EBITDA improved to Rs 61 crore vs Rs 28.8 crore in the year-ago period while the EBITDA margin improved to 5 percent vs 3.3 percent in Q2 FY22.