Nykaa Share Price Rises 2.45% on UBS Upgrade, Then Pulls Back – Check Target and Key Updates
Shares of Nykaa (FSN E-Commerce Ventures) gained momentum in early trade on Friday, March 7, 2025, rising 2.45% to hit an intraday high of ₹172.95. However, by 9:25 AM, the stock pared gains and was trading 0.09% lower at ₹168.65. In comparison, the BSE Sensex was trading flat with a slight negative bias at 74,274.46.
Why Did Nykaa Shares Rise?
The initial rally came after UBS, a Zurich-based brokerage firm, upgraded Nykaa’s rating to ‘Buy’ from ‘Neutral’. However, the brokerage lowered its target price to ₹200 from ₹205, still implying an 18.48% upside from Nykaa’s previous close of ₹168.80 (March 6).
UBS noted that Nykaa’s beauty and personal care segment continues to exceed expectations, with strong growth and stable margins, despite increasing competition. Additionally, Nykaa’s fashion segment is seeing a more cautious approach, with controlled marketing investments.
Nykaa Q3 Earnings – Strong Festival Sales Boost Profit
Nykaa reported a 51.3% year-on-year jump in net profit for Q3FY25, driven by robust festive season sales.
- Net profit: ₹26.4 crore (Q3FY25) vs. ₹17.45 crore (Q3FY24).
- Sequential growth: Up 103.6% from ₹13 crore in Q2FY25.
Key Takeaways:
- UBS upgrades Nykaa to ‘Buy’, but trims target to ₹200.
- Beauty & personal care segment remains strong despite competition.
- Nykaa’s Q3 profit surges 51.3% YoY, driven by festive sales.
