NYKAA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | NYKAA | Market Cap | 71,385 Cr. | Current Price | 249 ₹ | High / Low | 273 ₹ |
| Stock P/E | 1,111 | Book Value | 5.98 ₹ | Dividend Yield | 0.00 % | ROCE | 6.25 % |
| ROE | 6.10 % | Face Value | 1.00 ₹ | DMA 50 | 250 ₹ | DMA 200 | 233 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.37 % | PAT Qtr | 12.2 Cr. | PAT Prev Qtr | 12.9 Cr. |
| RSI | 54.6 | MACD | -3.71 | Volume | 32,86,900 | Avg Vol 1Wk | 47,46,804 |
| Low price | 155 ₹ | High price | 273 ₹ | PEG Ratio | -550 | Debt to equity | 0.08 |
| 52w Index | 79.7 % | Qtr Profit Var | -24.2 % | EPS | 0.22 ₹ | Industry PE | 46.9 |
📊 NYKAA shows weak potential for swing trading. The fundamentals are poor with extremely high P/E (1,111 vs industry 46.9), very low EPS (0.22 ₹), and weak return ratios (ROCE 6.25%, ROE 6.10%). Dividend yield is 0%, offering no passive returns. Technically, the stock is trading near its 50 DMA (250 ₹) and above 200 DMA (233 ₹), with RSI at 54.6 showing neutral momentum. MACD (-3.71) indicates short-term weakness, and volume is lower than weekly average, suggesting reduced trading interest. Overall, the stock is overvalued and risky for swing trading despite being near its recent high range.
💡 Optimal Entry Price: Around 240–245 ₹ (near support zone).
🚪 Exit Strategy: If already holding, consider exiting near 265–270 ₹ (resistance zone close to 52-week high) unless momentum improves significantly.
✅ Positive
- Stock trading above 200 DMA (233 ₹), showing some long-term support.
- DII holdings increased (+0.37%), reflecting domestic institutional confidence.
- Strong market cap (71,385 Cr.) ensures liquidity.
⚠️ Limitation
- Extremely high P/E ratio (1,111) compared to industry PE (46.9).
- Weak return ratios: ROCE 6.25% and ROE 6.10%.
- EPS very low at 0.22 ₹.
- PEG ratio (-550) suggests severe valuation concerns.
- Volume lower than weekly average, showing reduced trading activity.
📉 Company Negative News
- Quarterly PAT declined from 12.9 Cr. to 12.2 Cr. (-24.2%).
- FII holdings decreased (-0.39%), showing reduced foreign investor confidence.
📈 Company Positive News
- Stock trading near 52-week high range (273 ₹).
- DII holdings increased, showing domestic support.
🏭 Industry
- Industry PE at 46.9, far lower than company’s PE, highlighting overvaluation.
- E-commerce and retail sector outlook remains positive, but profitability challenges persist.
🔎 Conclusion
NYKAA is fundamentally weak and highly overvalued, with poor return ratios and declining profits. It offers limited swing trade potential, with entry around 240–245 ₹ and cautious exit near 265–270 ₹. Traders should remain cautious due to valuation risks and weak fundamentals despite sector growth prospects.