NYKAA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | NYKAA | Market Cap | 86,645 Cr. | Current Price | 303 ₹ | High / Low | 304 ₹ |
| Stock P/E | 968 | Book Value | 6.30 ₹ | Dividend Yield | 0.00 % | ROCE | 6.77 % |
| ROE | 5.17 % | Face Value | 1.00 ₹ | DMA 50 | 268 ₹ | DMA 200 | 251 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | -0.01 % | PAT Qtr | 41.0 Cr. | PAT Prev Qtr | 23.3 Cr. |
| RSI | 73.7 | MACD | 5.84 | Volume | 1,40,32,061 | Avg Vol 1Wk | 1,58,90,474 |
| Low price | 191 ₹ | High price | 304 ₹ | PEG Ratio | 59.8 | Debt to equity | 0.12 |
| 52w Index | 98.9 % | Qtr Profit Var | 181 % | EPS | 0.31 ₹ | Industry PE | 49.7 |
📊 NYKAA shows weak fundamentals and high valuation risk for swing trading. The P/E ratio (968) is extremely high compared to industry average (49.7), suggesting severe overvaluation. ROCE (6.77%) and ROE (5.17%) are low, while EPS of 0.31 ₹ is minimal. Debt-to-equity is modest at 0.12. RSI at 73.7 indicates overbought conditions, and MACD at 5.84 shows mild bullishness. The stock trades above both 50 DMA (268 ₹) and 200 DMA (251 ₹), confirming an uptrend. PAT improved (41 Cr vs 23.3 Cr), with quarterly profit variation at +181%, but valuation and fundamentals remain weak.
💡 Optimal Entry Price: Around 270–280 ₹ (near DMA support).
📈 Exit Strategy: If already holding, consider exiting near 300–305 ₹ (recent high resistance) or cut losses if momentum reverses.
Positive
- 📌 [Profit Growth](ca://s?q=NYKAA_quarterly_profit_growth): PAT increased from 23.3 Cr to 41 Cr (+181%).
- 📌 [FII Support](ca://s?q=NYKAA_FII_holdings): Foreign institutional investors increased holdings by 0.25%.
- 📌 [Uptrend Confirmation](ca://s?q=NYKAA_DMA_trend): Stock trades above both 50 DMA and 200 DMA.
Limitation
- ⚠️ [Extreme Valuation](ca://s?q=NYKAA_high_PE): P/E ratio of 968 is far above industry average (49.7).
- ⚠️ [Weak Profitability](ca://s?q=NYKAA_low_ROCE_ROE): ROCE at 6.77% and ROE at 5.17% are poor.
- ⚠️ [Overbought RSI](ca://s?q=NYKAA_RSI): RSI at 73.7 indicates overbought conditions.
Company Negative News
- ❌ [High Valuation Risk](ca://s?q=NYKAA_overvaluation): Elevated P/E compared to peers raises caution.
- ❌ [Weak EPS](ca://s?q=NYKAA_EPS): EPS of 0.31 ₹ is very low.
- ❌ [DII Exit](ca://s?q=NYKAA_DII_exit): Domestic investors reduced holdings slightly (-0.01%).
Company Positive News
- ✅ [Profit Growth](ca://s?q=NYKAA_profit_growth): PAT rose by 181% quarter-on-quarter.
- ✅ [Market Cap Strength](ca://s?q=NYKAA_market_cap): Market cap of 86,645 Cr indicates industry relevance.
Industry
- 🏭 [Industry PE](ca://s?q=Retail_industry_PE): Industry average P/E is 49.7, much lower than NYKAA’s valuation.
- 🏭 [Sector Outlook](ca://s?q=Retail_sector_outlook): E-commerce and retail sector benefits from digital adoption, but valuations remain sensitive to profitability.
Conclusion
📉 NYKAA is a weak candidate for swing trading due to extreme valuation and poor profitability metrics. Entry near 270–280 ₹ may offer a cautious setup, but upside is limited to 300–305 ₹. Risks include overvaluation, weak EPS, and overbought RSI, making this stock suitable only for high-risk traders with strict stop-loss discipline.