NYKAA - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.9
| Stock Code | NYKAA | Market Cap | 75,797 Cr. | Current Price | 265 ₹ | High / Low | 286 ₹ |
| Stock P/E | 1,202 | Book Value | 5.98 ₹ | Dividend Yield | 0.00 % | ROCE | 6.25 % |
| ROE | 6.10 % | Face Value | 1.00 ₹ | DMA 50 | 257 ₹ | DMA 200 | 244 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | -0.01 % | PAT Qtr | 23.3 Cr. | PAT Prev Qtr | 12.2 Cr. |
| RSI | 56.2 | MACD | 4.22 | Volume | 27,74,228 | Avg Vol 1Wk | 28,00,470 |
| Low price | 188 ₹ | High price | 286 ₹ | PEG Ratio | -595 | Debt to equity | 0.08 |
| 52w Index | 78.6 % | Qtr Profit Var | -4.91 % | EPS | 0.21 ₹ | Industry PE | 37.8 |
Analysis: NYKAA shows weak swing trade potential at current levels. RSI at 56.2 is mildly bullish, and MACD is positive (4.22), but valuation is extremely stretched with a P/E of 1,202 compared to industry average of 37.8. Current price (265 ₹) is above both 50 DMA (257 ₹) and 200 DMA (244 ₹), showing short-term strength. However, EPS is very low (0.21 ₹), and quarterly profit variation is negative (-4.91%), raising caution. Volumes are stable but not significantly higher than average, suggesting limited momentum.
Optimal Entry: Safer entry is near 250–255 ₹ support zone.
Exit Strategy: If already holding, consider exiting near 280–285 ₹ resistance unless momentum improves with stronger earnings.
✅ Positive
- Large market cap of 75,797 Cr provides stability.
- Stock trades above both 50 DMA and 200 DMA, showing short-term strength.
- Quarterly PAT improved (23.3 Cr vs 12.2 Cr).
- Debt-to-equity ratio of 0.08 reflects low leverage.
⚠️ Limitation
- Extremely high P/E ratio (1,202) compared to industry average (37.8).
- EPS at 0.21 ₹ is very low.
- Quarterly profit variation is negative (-4.91%).
- ROE (6.10%) and ROCE (6.25%) are modest, showing weak efficiency.
📉 Company Negative News
- Profit variation declined despite revenue growth.
- Valuation remains highly stretched, raising investor concerns.
📈 Company Positive News
- FII holdings increased (+0.25%), showing foreign investor interest.
- PAT improved sequentially (23.3 Cr vs 12.2 Cr).
🏭 Industry
- Industry P/E at 37.8 is far lower than NYKAA, highlighting overvaluation.
- Sector growth remains strong in e-commerce and beauty retail, but profitability is key.
🔎 Conclusion
NYKAA is not an ideal swing trade candidate due to extreme valuation and weak profitability metrics. Entry near 250–255 ₹ offers a safer risk-reward setup. Exit near 280–285 ₹ resistance is advisable unless earnings improve significantly. Short-term momentum exists, but fundamentals remain a concern.