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Economic Times
3 hours ago
- Business
- Economic Times
Nykaa shares slip 4% as brokerages flag fashion losses after Q4 results. Should you buy, sell or hold?
Reuters The persistent drag from fashion losses and an uneven margin trajectory could remain sticking points, at least in the near term. Shares of FSN E-Commerce Ventures, the parent company of Nykaa, fell as much as 3.8% to Rs 195.50 on Monday after the company's March-quarter results showed strong growth in its beauty business but continued weakness in fashion margins, prompting a mixed response from brokerages. While most analysts retained a bullish view on the company's beauty and personal care (BPC) performance, target prices and ratings varied sharply, reflecting divergent expectations on the pace of margin recovery and the impact of fashion segment losses. Among brokerages, JM Financial, Nuvama, IIFL Capital, and Nomura maintained positive views on the stock, highlighting Nykaa's resilient BPC segment and margin expansion, but Kotak Institutional Equities retained a 'reduce' rating, citing expensive valuations and continued weakness in fashion. Kotak Institutional Equities revised its target price to Rs 185 from Rs 170, implying a 5.4% downside from Monday's intraday low. The brokerage said, 'We trim FY2025-27 EBITDA estimates by 3-4%, driven by higher losses in fashion and B2B.' Kotak noted the steep 880 basis points year-on-year drop in fashion contribution margins and said, 'Reasonable growth trajectory, but valuations remain rich.' Nomura, while maintaining a 'neutral' rating, raised its target price to Rs 216 from Rs 190, implying a 10.5% upside. The brokerage said, 'Nykaa's focus on onboarding new global brands, expanding stores and product curation should continue to drive strong revenue growth in BPC. But margin improvement thus far has been slow and needs to pick up for us to turn more constructive.' Most brokerages pointed to the robust performance of Nykaa's BPC segment, which saw a 31% YoY GMV growth in Q4FY25 and contributed significantly to margin improvement. JM Financial reiterated a 'buy' rating and said, 'Nykaa BPC segment is going from strength to strength…despite seasonality-driven operating deleverage.' The brokerage said it expects sharper margin improvement in the coming years, driven by customer repeat purchases and working capital gains. JM set a target price of Rs 250, suggesting a 27.9% upside from the current market also maintained a 'buy' rating, raising its target to Rs 235 from Rs 205. The brokerage cut FY26/FY27 earnings estimates by 6.7% and 6.0%, respectively, but said, 'We are increasing medium-term growth and profitability.' This revised target implies a 20.2% upside from current Capital, too, kept a 'buy' call, with a target of Rs 220, or a 12.5% upside, saying, 'Own brands remain a key growth and margin driver…Nykaa continues to outperform overall Beauty market growth despite competition.'Despite signs of recovery in fashion GMV—up 18% YoY in Q4FY25—margin pressures continue to raise red flags. Multiple brokerages highlighted this as a concern, even as some remained hopeful for a turnaround. Elara Capital, which raised its target price to Rs 215 from Rs 195, acknowledged the fashion drag, stating, 'Losses in fashion are likely hitting trough and recovery to be key monitorable.' The brokerage maintained an 'accumulate' rating, with a 10% potential upside. JM Financial said it had 'pushed Fashion segment breakeven to FY27', citing ongoing marketing investments that weighed on margins. Nomura noted, 'EBITDA margin: Strong in BPC: 8.6%; weak in Fashion: -20%.' However, it welcomed Nykaa's shift in strategy towards proprietary brands in fashion, including lingerie and western wear. Nykaa's consolidated Q4FY25 revenue rose 24% YoY to Rs 2,267 crore, while profit after tax surged 193% to Rs 20 crore. However, on a sequential basis, both profit and revenue declined. EBITDA margin for the quarter stood at 6.5%, ahead of consensus estimates, and the company posted a full-year net profit of Rs 66 crore, doubling from BPC business remained the cornerstone of growth. For FY25, BPC GMV rose 30% YoY to Rs 11,775 crore. The company continued to scale its proprietary 'House of Nykaa' brands and launched several global labels, including Chanel and GMV grew 18% YoY in Q4, but the segment remains a drag on overall opinions are split. Bulls argue that Nykaa's differentiated positioning in BPC, global brand partnerships, and improving margins justify its current valuation. Bears point to extended fashion losses and slower margin recovery as risks. Also read | Nykaa shares in focus after reporting 193% YoY surge in Q4 PAT With target prices implying anything from a 5% downside to nearly 28% upside, market sentiment on Nykaa remains divided. The stock may appeal to those willing to bet on the company's long-term growth in beauty and personal care, a segment where it continues to show strong execution. But for others, the persistent drag from fashion losses and an uneven margin trajectory could remain sticking points, at least in the near term. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
4 hours ago
- Business
- Time of India
Buy Nuvama Wealth Management, target price Rs 7,500: JM Financial
JM Financial has a Buy call on Nuvama Wealth Management with a target price of Rs 7,500. The current market price of Nuvama Wealth Management is Rs 6,940.5. Nuvama Wealth Management, incorporated in 1993, is a Small Cap company with a market cap of Rs 25036.35 crore, operating in NBFC sector. Nuvama Wealth's key products/revenue segments include Fees & Commission Income, Interest, Other Services for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 1124.79 crore, up 8.68% from last quarter Total Income of Rs 1034.99 crore and up 21.07 % from last year same quarter Total Income of Rs 929.01 crore. The company has reported net profit after tax of Rs 251.53 crore in the latest quarter. The company's top management includes Kumar, Shivji Vikamsey, Motwani, S Nandra, Miller, Srivastava, Vikram, Sehgal, Kehair, Kaji. Company has S R Batliboi & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 4 crore shares outstanding. Live Events Investment Rationale Nuvama Wealth Management has demonstrated its ability protect robust profitability despite significant turmoil in external environment (RoA/RoE of 3.7%/30.4% in 4Q25). Share of recurring revenue (wealth+private+AMC+asset services) stands at 79% for 4Q25 vs 76% in 3Q25). As the market activity normalizes, JM Financial believes Nuvama is poised to benefit from resurgence in net new money. Robust performance of asset services business and expected breakeven in AMC business during FY26 should aid profitability. The brokerage remains constructive on the company. Promoter/FII Holdings Promoters held 54.78 per cent stake in the company as of 31-Mar-2025, while FIIs owned 16.58 per cent, DIIs 5.8 per cent. ETMarkets WhatsApp channel )
Economic Times
7 hours ago
- Business
- Economic Times
JM Financial maintains Buy on EPACK Durables, revises target price to Rs 480
JM Financial has maintained a Buy call on EPACK Durables with a revised target price of Rs 480 (Earlier Rs 540). The current market price of EPACK Durables is Rs 376.65. Time period given by the analyst is a year when EPACK Durables Ltd. price can reach defined target. EPACK Durables, incorporated in 2019, is a Small Cap company with a market cap of Rs 3656.85 crore, operating in the Consumer Durables sector. ADVERTISEMENT EPACK Durables' key products/revenue segments include Electrical Consumer Durables, Other Operating Revenue, Scrap and Export Incentives for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 648.75 crore, up 69.96% from last quarter Total Income of Rs 381.71 crore and up 22.12% from last year same quarter Total Income of Rs 531.25 crore. The company has reported net profit after tax of Rs 38.91 crore in the latest quarter. The company's top management includes Bothra, Mohta, Agarwal, Bhargava, Gulati, Narasimhachari, Chandra Jain, Singhania, D D Singhania, Niren Parikh. Company has Deloitte Haskins & Sells as its auditors. As on 31-03-2025, the company has a total of 10 crore shares outstanding. Investment Rationale EPACK posted a good 4Q, with PAT rising 36% YoY and beating estimates. It expects to outgrow the industry through its customer diversification initiatives, a key contributor being the partnership with Hisense. ODM manufacturing for Hisense has already started, and the construction of the facility is also on track, with OEM manufacturing targeted by 3Q/4QFY26. The management has indicated an investment of Rs 4.5 billion-5 billion over the next 12-18 months to ramp up capacities, predominantly in Sri City. JM Financial factors in these capacity expansion plans and cut our FY26/27E EPS estimates by 2-9%. However, the stock price has broadly been flat over the last 6 months, leaving ~28% upside to our target price. They maintain BUY with a target price of Rs 460, at 40x Mar?27E EPS. ADVERTISEMENT Promoter/FII Holdings Promoters held 48.04 per cent stake in the company as of 31-Mar-2025, while FIIs owned 1.58 per cent, DIIs 6.57 per cent. (You can now subscribe to our ETMarkets WhatsApp channel) Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.
Time of India
7 hours ago
- Business
- Time of India
JM Financial maintains Buy on EPACK Durables, revises target price to Rs 480
EPACK Durables' key products/revenue segments include Electrical Consumer Durables, Other Operating Revenue, Scrap and Export Incentives for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 648.75 crore, up 69.96% from last quarter Total Income of Rs 381.71 crore and up 22.12% from last year same quarter Total Income of Rs 531.25 crore. The company has reported net profit after tax of Rs 38.91 crore in the latest quarter. The company's top management includes Bothra, Mohta, Agarwal, Bhargava, Gulati, Narasimhachari, Chandra Jain, Singhania, D D Singhania, Niren Parikh. Company has Deloitte Haskins & Sells as its auditors. As on 31-03-2025, the company has a total of 10 crore shares outstanding. Live Events Investment Rationale EPACK posted a good 4Q, with PAT rising 36% YoY and beating estimates. It expects to outgrow the industry through its customer diversification initiatives, a key contributor being the partnership with Hisense. ODM manufacturing for Hisense has already started, and the construction of the facility is also on track, with OEM manufacturing targeted by 3Q/4QFY26. The management has indicated an investment of Rs 4.5 billion-5 billion over the next 12-18 months to ramp up capacities, predominantly in Sri City. JM Financial factors in these capacity expansion plans and cut our FY26/27E EPS estimates by 2-9%. However, the stock price has broadly been flat over the last 6 months, leaving ~28% upside to our target price. They maintain BUY with a target price of Rs 460, at 40x Mar?27E EPS. Promoter/FII Holdings Promoters held 48.04 per cent stake in the company as of 31-Mar-2025, while FIIs owned 1.58 per cent, DIIs 6.57 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel JM Financial has maintained a Buy call on EPACK Durables with a revised target price of Rs 480 (Earlier Rs 540). The current market price of EPACK Durables is Rs 376.65. Time period given by the analyst is a year when EPACK Durables Ltd. price can reach defined target. EPACK Durables, incorporated in 2019, is a Small Cap company with a market cap of Rs 3656.85 crore, operating in the Consumer Durables Durables' key products/revenue segments include Electrical Consumer Durables, Other Operating Revenue, Scrap and Export Incentives for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 648.75 crore, up 69.96% from last quarter Total Income of Rs 381.71 crore and up 22.12% from last year same quarter Total Income of Rs 531.25 crore. The company has reported net profit after tax of Rs 38.91 crore in the latest company's top management includes Bothra, Mohta, Agarwal, Bhargava, Gulati, Narasimhachari, Chandra Jain, Singhania, D D Singhania, Niren Parikh. Company has Deloitte Haskins & Sells as its auditors. As on 31-03-2025, the company has a total of 10 crore shares posted a good 4Q, with PAT rising 36% YoY and beating estimates. It expects to outgrow the industry through its customer diversification initiatives, a key contributor being the partnership with Hisense. ODM manufacturing for Hisense has already started, and the construction of the facility is also on track, with OEM manufacturing targeted by 3Q/4QFY26. The management has indicated an investment of Rs 4.5 billion-5 billion over the next 12-18 months to ramp up capacities, predominantly in Sri City. JM Financial factors in these capacity expansion plans and cut our FY26/27E EPS estimates by 2-9%. However, the stock price has broadly been flat over the last 6 months, leaving ~28% upside to our target price. They maintain BUY with a target price of Rs 460, at 40x Mar?27E held 48.04 per cent stake in the company as of 31-Mar-2025, while FIIs owned 1.58 per cent, DIIs 6.57 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Economic Times
3 days ago
- Business
- Economic Times
Buy Zinka Logistics Solutions, target price Rs 590: JM Financial
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel JM Financial has a Buy call on Zinka Logistics Solutions with a target price of Rs 590. The current market price of Zinka Logistics is Rs 453.4. The time period given by the analyst is a year when Zinka Logistics Solutions price can reach defined target. Zinka Logistics, incorporated in 2015, is a Small Cap company with a market cap of Rs 7921.21 crore, operating in the Logistics Logistics Solutions' key products/revenue segments include Truck Operator Services for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 136.76 crore, up 11.03% from last quarter Total Income of Rs 123.18 crore and up 47.54% from last year same quarter Total Income of Rs 92.69 crore. The company has reported net profit after tax of Rs 280.17 crore in the latest company's top management includes Kumar Naidu Yabaji, Hridaya, Balasubramaniam, Daniel, Dutta, Singh, Shah, Muthuchamy. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 31-03-2025, the company has a total of 18 crore shares (parent company Zinka Logistics Solution) revenue has grown at FY22-25 CAGR of 53%, roughly 3.5x in 3 years. Moreover, the company turned adjusted EBITDA profitable in H2FY24 and has maintained the trajectory to turn PAT positive this quarter. JM Financial forecasts that the company to maintain the momentum with 33%+ FY25-27 Revenue CAGR and Adj. EBITDA margin reaching 39%, effectively delivering incremental EBITDA margin of 58% over the coming 2 years. They value the company using DCF-based valuation, resulting in Mar?26 target price of Rs 590, 28% upside at CMP. The brokerage maintains ?BUY? and believe this to be a robust compounding story with significant optionality if the company manages to crack the large opportunities in Load Brokerage or Vehicle Financing held 27.7 per cent stake in the company as of 31-Mar-2025, while FIIs owned 11.59 per cent, DIIs 10.26 per cent.
