NYKAA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | NYKAA | Market Cap | 79,190 Cr. | Current Price | 277 ₹ | High / Low | 286 ₹ |
| Stock P/E | 885 | Book Value | 6.30 ₹ | Dividend Yield | 0.00 % | ROCE | 6.77 % |
| ROE | 5.17 % | Face Value | 1.00 ₹ | DMA 50 | 263 ₹ | DMA 200 | 247 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | -0.01 % | PAT Qtr | 41.0 Cr. | PAT Prev Qtr | 23.3 Cr. |
| RSI | 59.7 | MACD | 3.84 | Volume | 62,43,403 | Avg Vol 1Wk | 40,45,313 |
| Low price | 191 ₹ | High price | 286 ₹ | PEG Ratio | 54.7 | Debt to equity | 0.12 |
| 52w Index | 90.5 % | Qtr Profit Var | 181 % | EPS | 0.31 ₹ | Industry PE | 41.9 |
📊 Financials: NYKAA shows weak fundamentals despite revenue growth. Quarterly PAT improved to 41 Cr from 23.3 Cr, but margins remain thin. ROCE at 6.77% and ROE at 5.17% are low, reflecting poor efficiency. EPS is only 0.31 ₹, highlighting limited profitability. Debt-to-equity at 0.12 is manageable, but cash flows remain under pressure.
💰 Valuation: The stock trades at a P/E of 885, massively above the industry average of 41.9, making it extremely overvalued. Book value is 6.30 ₹, with current price at 277 ₹, implying a steep P/B ratio of ~44. PEG ratio of 54.7 further indicates stretched valuation relative to growth. Intrinsic value appears far below current levels, suggesting caution.
🛍️ Business Model & Health: NYKAA operates in e-commerce, focusing on beauty, fashion, and lifestyle products. Competitive advantage lies in brand recognition, digital presence, and strong distribution. However, profitability challenges and inflated valuations weaken overall health. The company is in a growth phase but lacks sustainable margins.
📉 Entry Zone: RSI at 59.7 indicates mildly overbought levels. Support is near 250 ₹, resistance at 286 ₹. Entry should be cautious, ideally closer to 240–250 ₹ if valuations normalize. Long-term holding is risky unless profitability improves significantly.
Positive
- 🛍️ [Brand Recognition](ca://s?q=NYKAA_brand_strength): Strong presence in beauty and lifestyle e-commerce.
- 📈 [Revenue Growth](ca://s?q=NYKAA_revenue_growth): PAT improved from 23.3 Cr to 41 Cr.
- 💻 [Digital Presence](ca://s?q=NYKAA_digital_presence): Strong online platform with wide reach.
Limitation
- 📉 [Profitability](ca://s?q=NYKAA_profitability): ROCE (6.77%) and ROE (5.17%) are weak.
- ⚠️ [Valuation](ca://s?q=NYKAA_valuation): P/E of 885 and PEG of 54.7 indicate extreme overvaluation.
- 📊 [Thin Margins](ca://s?q=NYKAA_thin_margins): EPS of 0.31 ₹ reflects limited profitability.
Company Negative News
- 📉 [Overvaluation](ca://s?q=NYKAA_overvaluation): P/E far exceeds industry average.
- 📊 [Weak Returns](ca://s?q=NYKAA_weak_returns): ROCE and ROE remain below industry standards.
Company Positive News
- 📈 [FII Inflow](ca://s?q=NYKAA_FII_inflow): Foreign investors increased holdings by 0.25%.
- 💹 [Profit Growth](ca://s?q=NYKAA_profit_growth): PAT rose significantly quarter-on-quarter.
Industry
- 🛒 [E-commerce Growth](ca://s?q=Indian_ecommerce_growth): Sector expanding with rising digital adoption.
- 📊 [Industry PE](ca://s?q=Ecommerce_industry_PE): Sector average P/E is 41.9, far below NYKAA’s valuation.
Conclusion
⚠️ NYKAA demonstrates strong brand presence and revenue growth but suffers from weak profitability and extreme overvaluation. Entry should be cautious near 240–250 ₹, and long-term holding is not advisable unless margins improve and valuations normalize.