Nykaa parent FSN E-Commerce Ventures' shares were in focus on Thursday, a day after the company reported its financial results for the October-December period. Nykaa shares ended 7.5 percent lower at Rs 1,712 apiece on BSE, having fallen as much as 8.3 percent during the session.

Share Market Live

NSE

After market hours on Wednesday, Nykaa reported a net profit of Rs 27.9 crore for the quarter ended December 2021, down 59.5 percent on a year-on-year basis. Its quarterly revenue increased 35.9 percent to Rs 1,098.3 crore.

ALSO READ

: How Street is reading new age cos' Q3 results

What to do with Nykaa shares after the company's Q3 results?

Saurabh Mukherjea of Marcellus Investment said in an interview to CNBC-TV18 that for companies like Nykaa, one should focus on business growth and not the stock price.

Here's what brokerages say:

Goldman Sachs

The brokerage maintained a 'buy' call on Nykaa with a target price of Rs 2,420. FSN E-Commerce Ventures missed estimates on the gross merchandise value front but its margin was in line, according to Goldman Sachs.

Investors will likely be concerned by growth deceleration in the company's fashion segment, though improvement in its margin profile is a positive, the brokerage said.

ALSO READ: Why investors are dumping Zomato, Paytm shares

Morgan Stanley

The brokerage retained its 'overweight' rating on Nykaa with a target price of Rs 2,040. The company's Q3 numbers were ahead of estimates in terms of topline and margin, though its margin saw a compression due to higher marketing expenses, according to Morgan Stanley.

Read more from CNBC-TV18's budget coverage here

(Edited by : Sandeep Singh)

First Published:Feb 10, 2022 9:59 AM IST