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Home / Markets / Stock Markets /  Nykaa shares down 24% in a month amid tech stocks sell-off. What next?
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New age tech stocks have remained under pressure in the recent stock market sell-off, hitting their respective lows since listing. Shares of Nykaa have also taken the hit as the stock has declined over 35% from its all-time high of 2,574 made on the BSE on 26 November, 2021. Though, the stock, which got listing in November, is still up over 45% from its IPO issue price of IPO issue price of 1,125 apiece. 

“Stock price of Nykaa has been under pressure in line with its global peers. The valuations of online marketplaces have seen sharp corrections led by leading Chinese marketplaces that are now trading near multi year lows. With the Fed hikes on the way, investors are taking money off the table by reducing their exposure to highly valued consumer tech stocks even if they have a leading market share in a high growth industry," said Abhay Agarwal, Founder and fund manager at Piper Serica, SEBI Regd. PMS.

Agarwal expects Nykaa's stock price to be under pressure till it announces its quarterly results for the third quarter. “Investors would want to see improved unit level economics and an increase in AOV and GMV before allocating their capital to Nykaa," he added.

Founded in 2012 by former investment banker Falguni Nayar, FSN E-Commerce Ventures Ltd, which runs an online marketplace for beauty and wellness products Nykaa, has its owned manufactured brand products under its two business verticals -- Nykaa and Nykaa Fashion.

Sumeet Bagadia of Choice Broking has advised the investors to avoid buying the Nykaa stock below 1,570 levels as the stock may come come down till 1,400 levels.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

 

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