Nykaa shares up 3% in a weak market; Stock Market LIVE Updates

Shares of the lifestyle-focused consumer technologies company are up 3% today.

This comes a day after it reported a robust Q3 business update. The company expects its Net Sales Value (NSV) to grow in the mid-twenties and revenue to rise in the low twenties on a YoY basis.

The company witnessed consistent growth across its three verticals in the December quarter. Its Beauty and Personal Care (BPC) vertical’s Gross Merchandise Value (GMV) growth is expected to be in the mid-twenties. This segment’s NSV growth is expected to be around twenty percent on a year-on-year basis.

“The difference in GMV and NSV growth is primarily due to brand led pricing and discounting, mainly in mass and masstige categories,” said the management.

The management believes Nykaa’s BPC’s growth was higher than the industry growth. “However, we believe current industry growth is below long-term trajectory and should revert to the median in the near to mid-term, given the strong macroeconomic and demographic outlook,” said the management.

Nykaa’s Superstore vertical witnessed high growth and now has a meaningful share of the overall NSV.

The management warned that the consumption in the fashion sector remained muted and has not seen the uplift expected during the festive season. Despite this, the company’s fashion vertical GMV is expected to grow at around forty percent, with NSV growth expected in the low thirties on a year-on-year basis.

“This is a testament to the quality of the assortment, superior customer metrics along with platform strength,” said the management.