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Nykaa Growth Plans: Brokerages Bullish, Price Target Raised

19 June, 20242 min read

Nykaa, a leading beauty and wellness retailer, has received positive feedback from major brokerages regarding Nykaa growth plans.

The two big brands of India like ICICI Securities and Kotak Institutional Equities have invested in Nykaa which reflect its strength in the market.


ICICI Securities Upgrades Nykaa’s Rating

ICICI Securities has recently upgraded Nykaa's stock rating from 'Hold' to 'Add'.

The growth Nykaa recorded show the high confidence of brokerage in Nykaa growth plans. Nykaa market price also increased from INR 175 to INR195.

This upgrade suggests that ICICI Securities believes Nykaa is well-positioned to achieve significant growth in the coming years.

Key Reasons for the Upgrade

ICICI Securities cited several reasons for this positive revision.

Firstly, Nykaa's robust business model and strong market presence in the beauty sector were highlighted. Secondly, the company's strategic initiatives and expansion plans were deemed promising.

Lastly, Nykaa's ability to adapt to changing consumer preferences and market trends has further strengthened its growth outlook.

Kotak Institutional Equities’ Stance on Nykaa

Kotak Institutional Equities has maintained its ‘Add’ rating on Nykaa's stock. Brokerage doesn't effect the fair value of Nykaa and remain it to unchanged in to INR 195.


This indicates that Kotak Institutional Equities also sees a bright future for Nykaa, aligning with the sentiments expressed by ICICI Securities.

Consistent Confidence

The consistent rating from Kotak Institutional Equities showcases their long-term confidence in Nykaa's business model and growth strategy.

The unchanged fair value further solidifies their belief in the company's ability to achieve its projected growth targets.

Nykaa’s Growth Projections

During a recent investor day, Nykaa shared ambitious growth plans. The company expects its beauty business to grow at a compounded annual growth rate (CAGR) of mid-to-late 20s% until FY28.

This optimistic projection has played a significant role in the positive evaluations from both ICICI Securities and Kotak Institutional Equities.

Strategic Initiatives

Nykaa’s growth strategy includes expanding its product offerings, enhancing its online and offline presence, and leveraging technology to improve customer experience.

These initiatives are expected to drive the company’s growth and help it maintain a competitive edge in the beauty and wellness market.

News Takeaways

Nykaa growth plans supported be strong brokerage firms which shows the potential of Nykaa in market.

ICICI Securities has upgraded its rating and increased the price target, while Kotak Institutional Equities has maintained its positive stance.

With ambitious growth projections and strategic initiatives, Nykaa is poised for significant expansion in the coming years.

Investors and stakeholders are likely to keep a close eye on the company's progress as it strives to achieve its growth targets.

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