⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NYKAA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | NYKAA | Market Cap | 69,572 Cr. | Current Price | 243 ₹ | High / Low | 286 ₹ |
| Stock P/E | 1,103 | Book Value | 5.98 ₹ | Dividend Yield | 0.00 % | ROCE | 6.25 % |
| ROE | 6.10 % | Face Value | 1.00 ₹ | DMA 50 | 256 ₹ | DMA 200 | 240 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.37 % | PAT Qtr | 23.3 Cr. | PAT Prev Qtr | 12.2 Cr. |
| RSI | 40.7 | MACD | -5.39 | Volume | 50,30,814 | Avg Vol 1Wk | 53,29,371 |
| Low price | 160 ₹ | High price | 286 ₹ | PEG Ratio | -546 | Debt to equity | 0.08 |
| 52w Index | 66.2 % | Qtr Profit Var | -4.91 % | EPS | 0.21 ₹ | Industry PE | 39.7 |
📊 Core Financials
- Revenue growth: PAT improved to 23.3 Cr. from 12.2 Cr., but overall profitability remains low
- Profit margins: EPS at 0.21 ₹, ROE 6.10%, ROCE 6.25% — weak efficiency
- Debt ratios: Debt-to-equity at 0.08, manageable
- Cash flows: Positive but limited due to thin margins
- Return metrics: ROE and ROCE below industry averages
💹 Valuation Indicators
- P/E Ratio: 1,103, extremely overvalued compared to industry PE of 39.7
- P/B Ratio: ~40.6 (243 ₹ / 5.98 ₹), very high
- PEG Ratio: -546, distorted due to weak earnings
- Intrinsic Value: Current price far above fair value given fundamentals
🏢 Business Model & Competitive Advantage
- Operates in e-commerce and beauty retail sector
- Competitive advantage through strong brand recognition and digital-first strategy
- Industry demand supported by rising online shopping and beauty consumption trends
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near 200–210 ₹ range if profitability improves
- Long-Term Holding: Not recommended until earnings stabilize and valuation aligns with industry norms
✅ Positive
- PAT improved to 23.3 Cr. from 12.2 Cr.
- DII holding increased (+0.37%)
- Strong brand presence in e-commerce and beauty retail
⚠️ Limitation
- Extremely high P/E ratio (1,103) compared to industry average
- Low EPS (0.21 ₹) and weak profitability
- PEG ratio (-546) indicates distorted valuation
📰 Company Negative News
- FII holding decreased (-0.39%)
- Quarterly profit variation (-4.91%) shows volatility
- Stock trading below DMA 50 (256 ₹), showing weak momentum
🌟 Company Positive News
- PAT improved quarter-on-quarter
- DII holding increased (+0.37%)
- RSI at 40.7 indicates mildly oversold conditions, potential for rebound
🏭 Industry
- Industry PE at 39.7, NYKAA trades at a steep premium
- Sector benefits from rising e-commerce penetration and beauty product demand
🔎 Conclusion
- NYKAA shows weak fundamentals with low profitability and extreme overvaluation
- Valuation is stretched compared to industry peers, limiting near-term upside
- Not suitable for long-term holding unless earnings improve significantly; entry only near 200–210 ₹ with cautious optimism