Up 19% year-to-date, should you buy, hold or sell this new-age midcap stock?

Shares of fashion-to-beauty e-retailer – Nykaa declined in Monday’s trade (June 2, 2025) post the company’s quarterly show. At the last count at around 13:33 pm, shares of the company traded with a cut of over 4 per cent at Rs 194.6 apiece on the BSE.

While, the stock at the day’s low was dragged to Rs 193.55, a loss of nearly 5 per cent over the previous close.

Nykaa Q4FY25 results

The new age company in the March quarter posted mostly in-line results with profit slightly below estimates. Profit for the period grew 2.9 times to Rs 20 crore as against Rs 7 crore in the same period of the previous year.

Revenue at the company also climbed 23.6 per cent to Rs 2,062 crore versus Rs 1,668 crore. Zee Business research estimated topline to come in at Rs 2,076 crore during the quarter.

Furthermore, the company reported 43 per cent growth in EBITDA to Rs 133.2 crore as of the March quarter versus Rs 93.3 crore in the same quarter of the previous year.

The company’s gross merchandise value (GMV) growth has been 27 per cent, while the beauty and fashion GMV growth has been at 31 per cent and 18 per cent, respectively.

Both the BPC and Fashion GMV growth outpaced industry expected growth of 25 per cent/12 per cent,respectively.

Brokerages on Nykaa post Q4 earnings

HSBC double downgrades Nykaa

The global brokerage HSBC downgraded the stock to ‘hold’ from the earlier ‘buy’ call. The target price on the stock has been lowered to Rs 200 from Rs 250.

Beauty continued growth trends in Q4FY25 (+31% y-o-y GMV) while Fashion saw an uptick (+18% GMV growth vs 8% in Q3), it added. Also, the results did not pointed out to any clarity on earlier commitment of break-even in the fashion business.

Jefferies reiterates buy on Nykaa

The brokerage has given a target of Rs 240 per share.
 
Nomura has maintained ‘Neutral’ view 

The brokerage has maintained ‘neutral’ view on the stock with the target raised to Rs 216 from the earlier Rs 190. In-line 4Q BPC continued to deliver broad-based growth, while the fashion continues to be weak, with revenue growth at 11% YoY despite a re-escalation in A&P spending – EBITDA losses at -10% of NSV declined 140bps YoY & missed estimates, it added.

Macquarie on Nykaa

The brokerage on the stock has maintained ‘underperform’ rating with the target at Rs 145.

Citi on Nykaa

US-based brokerage has given its ‘sell’ call with the target at Rs 160 per share.The  brokerage noted that the company has come up with in-line 4Q. BPC continued to deliver broad-based growth, while fashion continues to be weak, with revenue growth at 11 per cent YoY despite a re-escalation in A&P spending.