NYKAA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | NYKAA | Market Cap | 68,588 Cr. | Current Price | 239 ₹ | High / Low | 286 ₹ |
| Stock P/E | 1,088 | Book Value | 5.98 ₹ | Dividend Yield | 0.00 % | ROCE | 6.25 % |
| ROE | 6.10 % | Face Value | 1.00 ₹ | DMA 50 | 255 ₹ | 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 | 37.8 | MACD | -5.72 | Volume | 21,36,472 | Avg Vol 1Wk | 50,03,049 |
| Low price | 160 ₹ | High price | 286 ₹ | PEG Ratio | -539 | Debt to equity | 0.08 |
| 52w Index | 63.2 % | Qtr Profit Var | -4.91 % | EPS | 0.21 ₹ | Industry PE | 38.4 |
📊 NYKAA shows weak fundamentals and stretched valuation. The P/E of 1,088 is extremely high compared to the industry average (38.4), while ROCE (6.25%) and ROE (6.10%) are low, indicating poor efficiency. EPS is just 0.21 ₹, and quarterly profit variation is negative (-4.91%). Technical indicators (RSI 37.8, MACD -5.72) suggest bearish momentum, with the stock trading below DMA 50 (255 ₹) and hovering near DMA 200 (240 ₹). This makes NYKAA a weak candidate for swing trading, suitable only for cautious short-term plays near support.
💡 Optimal Entry Price: Around 230–240 ₹ (close to support zone near 160 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 255–260 ₹ (DMA resistance) unless fundamentals improve.
Positive
- Quarterly PAT improved (23.3 Cr. vs 12.2 Cr.), showing short-term earnings growth.
- DII holdings increased (+0.37%), reflecting domestic institutional support.
- Debt-to-equity ratio of 0.08 indicates manageable leverage.
Limitation
- Extremely high P/E (1,088) compared to industry average (38.4), showing overvaluation.
- Weak ROCE (6.25%) and ROE (6.10%) indicate poor efficiency.
- PEG ratio (-539) highlights growth concerns.
- Dividend yield is 0%, offering no income support.
Company Negative News
- Quarterly profit variation is negative (-4.91%), showing earnings pressure.
- FII holdings decreased (-0.39%), reflecting reduced foreign investor confidence.
- Stock trading below DMA 50 and near DMA 200, reflecting technical weakness.
Company Positive News
- Quarterly PAT improved sequentially (23.3 Cr. vs 12.2 Cr.).
- DII holdings increased (+0.37%), showing domestic support.
Industry
- Industry P/E is 38.4, far below NYKAA’s 1,088, highlighting premium valuation.
- E-commerce and retail sector remains competitive, with growth potential but high volatility.
Conclusion
⚠️ NYKAA is a weak swing trade candidate due to poor fundamentals, extreme valuation, and bearish technicals. Entry near 230–240 ₹ may offer limited upside, but risks outweigh rewards. Exit targets should be set around 255–260 ₹, with a strict stop-loss near 225 ₹ to manage downside risk.