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Economic Times
2 days ago
- Business
- Economic Times
Inox Wind shares slide 3% after Q4 results, but brokerages predict 21% upside
Here are the details: Inox Wind Q4 results Live Events Inox Wind share price target After the Q4 results, here's what the brokerage firms said: Nuvama: Buy | Target Price: Rs 236 ICICI Securities: Buy | Target Price: Rs 230 JM Financial: Buy | Target Price: Rs 216 (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Inox Wind on Monday slid 3.2% to their day's low of Rs 188.75 on the BSE despite a sharp 391% rise in its consolidated Q4FY25 PAT, its highest ever, reported at Rs 190.34 this, various brokerage firms have shared their views on the company's performance, giving target prices as high as Rs 236, which is an upside potential of 21% from the stock's closing price on the quarter ended March 30, 2025, the company's net profit rose 391% to Rs 190.34 crore, up from Rs 38.74 crore in the same quarter of the previous year, while the revenue from operations increased by 130% YoY to Rs 1,311 the company's order book also witnessed a robust growth of 21% YoY to Rs 3,203 crore versus Rs 2,656 crore in the corresponding quarter of the previous financial order book stood at 3.2 GW, as the FY25 order inflows stood at 1.5 Wind also informed that its subsidiary Inox Green's renewables O&M portfolio surged to 5.1 GW, with a foray into the solar O&M merger between Inox Wind Energy and IWL was also approved, while the liabilities on IWL's balance sheet were reduced by Rs 2,050 crore.'Inox Wind continues to deliver strong results, reporting its highest ever quarterly profit, a testament to the efforts of the company over the past quarters. I am also delighted to announce that the Hon'ble NCLT has approved the scheme of arrangement between Inox Wind Energy and Inox Wind, which further fortifies Inox Wind's balance sheet. With the strong and favourable macroeconomic environment for the Indian renewable energy sector, our Group is well positioned to capitalise on the opportunities as one of the leaders in energy transition with our presence across wind, solar, EVs, BESS and renewable power generation,' said Devansh Jain, Executive Director of INOXGFL Institutional Equities has given a 'Buy' rating on Inox Wind with a raised target price of Rs 236, up from Rs brokerage noted that Q4FY25 execution was modest at 236MW versus an estimate of 281MW, but strong EBITDA margins of 19.9% helped cushion the revenue miss. PAT of Rs 1.9 billion met estimates, backed by a product-heavy mix. Nuvama retained its FY26/27 execution guidance of 1.2GW/2GW and noted the company's visibility supported by a 3.2GW order backlog. The firm tweaked earnings to account for lower EPC execution, adjusted margins, and amalgamation-related EPS Securities has reiterated a 'Buy' rating on Inox Wind with a revised target price of Rs 230, up from Rs 228 brokerage highlighted that Inox Wind reported a strong FY25 performance, with revenue doubling to Rs 36 billion and execution rising to 0.7GW. EBITDA tripled to Rs 8 billion. The firm has factored in the execution of 1.2GW in FY26 and 1.7GW in FY27, driven by the company's robust order book of 3.2GW, which is 4.5x FY25 execution. The company also received fresh orders of 1.5GW and introduced a target to execute 2GW in FY27, supporting a positive Financial has maintained a 'Buy' rating on Inox Wind with a target price of Rs 216. The brokerage stated that Q4FY25 revenue rose 2.4x YoY to Rs 12.8 billion due to increased execution and improved blended realisation of Rs 54 million/MW. PAT stood at Rs 1.9 billion, in line with expectations, while EBITDA margin came in at 20%, up from 19% YoY. The firm expects execution to accelerate from 705MW in FY25 to 1,150MW in FY26 and 1,750MW in FY27, projecting revenue, EBITDA, and PAT CAGR of 45%, 46%, and 55%, respectively, for FY25–28.: 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
2 days ago
- Business
- Time of India
Nykaa shares slip 4% as brokerages flag fashion losses after Q4 results. Should you buy, sell or hold?
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. Live Events 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 price. Nuvama 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 levels. IIFL 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.' Fashion margins disappoint 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. Q4 highlights and full-year context 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 FY24. Nykaa's 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 Supergoop. Fashion GMV grew 18% YoY in Q4, but the segment remains a drag on overall profitability. Should you buy, sell or hold? Brokerage 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) ETMarkets WhatsApp channel )
Time of India
2 days ago
- Business
- Time of India
Nykaa shares drop despite strong Q4 performance
Nykaa parent FSN E-commerce saw shares decline in early trade as Indian market opened with losses on Monday. The counter opened 2 per cent lower at Rs 199 against the previous closing of Rs 203.26 on the BSE. It was trading at Rs 201.26 as of 9:53 am. The beauty and fashion retailer posted strong March quarter numbers last Friday, with nearly doubling to Rs 19 crore. The Mumbai-based company's operating revenue rose 23.6 per cent year-on-year to Rs 2,016.7 crore for the fourth quarter, up from Rs 1,667.9 crore, driven by customer acquisition, brand partnerships, and network expansion. The performance was in line with the company's guidance issued in April, when it projected consolidated net revenue growth in the low to mid-20 per cent range for the March quarter. However, on a sequential basis, Nykaa's Q4 profit declined 29.3 per cent from Rs 26.9 crore reported in the previous quarter. Nykaa's beauty vertical, which contributes over 90 per cent of the company's total revenue, posted a 24.7 per cent YoY increase to Rs 1,895 crore from Rs 1,519 crore. The fashion segment saw muted growth, rising 11 per cent to Rs 161 crore from Rs 145 crore, with gross merchandise value (GMV) growing 18 per cent year-on-year. For the full fiscal year, Nykaa reported a consolidated gross merchandise value (GMV) – total value of goods sold across its platforms – of Rs 15,604 crore, a 25 per cent increase from the previous year. Nykaa currently serves 42 million customers and operates 237 offline stores across India, offering products from over 8,600 brands. In FY25 alone, the company added around 50 stores — its highest annual addition to date. "While BPC segment continues to deliver healthy growth with better profitability, revival in fashion business remains a key monitorable, given the heightened competitive intensity across the industry," said brokerages house Nuvama in a note on Monday. Nuvama analysts continue to expect improvement in profitability on the back of lower losses in fashion and eB2B segment.
Economic Times
2 days ago
- Business
- Economic Times
Nykaa shares drop despite strong Q4 performance
Nykaa parent FSN E-commerce saw shares decline in early trade as Indian market opened with losses on Monday. The counter opened 2% lower at Rs 199 against the previous closing of Rs 203.26 on the BSE. It was trading at Rs 201.26 as of 9:53 am. The beauty and fashion retailer posted strong March quarter numbers last Friday, with nearly doubling to Rs 19 crore. The Mumbai-based company's operating revenue rose 23.6% year-on-year to Rs 2,016.7 crore for the fourth quarter, up from Rs 1,667.9 crore, driven by customer acquisition, brand partnerships, and network expansion. The performance was in line with the company's guidance issued in April, when it projected consolidated net revenue growth in the low to mid-20% range for the March on a sequential basis, Nykaa's Q4 profit declined 29.3% from Rs 26.9 crore reported in the previous quarter. Nykaa's beauty vertical, which contributes over 90% of the company's total revenue, posted a 24.7% YoY increase to Rs 1,895 crore from Rs 1,519 crore. The fashion segment saw muted growth, rising 11% to Rs 161 crore from Rs 145 crore, with gross merchandise value (GMV) growing 18% year-on-year. For the full fiscal year, Nykaa reported a consolidated gross merchandise value (GMV) – total value of goods sold across its platforms – of Rs 15,604 crore, a 25% increase from the previous year. Nykaa currently serves 42 million customers and operates 237 offline stores across India, offering products from over 8,600 brands. In FY25 alone, the company added around 50 stores — its highest annual addition to date."While BPC segment continues to deliver healthy growth with better profitability, revival in fashion business remains a key monitorable, given the heightened competitive intensity across the industry," said brokerages house Nuvama in a note on Monday. Nuvama analysts continue to expect improvement in profitability on the back of lower losses in fashion and eB2B segment.
Business Recorder
4 days ago
- Business
- Business Recorder
Foreign investors raise bets that India stock market rally may stall
Foreign investors are becoming more cautious about the Indian stock market, indicating a three-month rally may run out of legs despite retail traders growing optimistic, according to monthly derivatives data analysed by two brokerages. The Nifty 50 has risen about 12% from March through May, largely due to better-than-expected corporate earnings and easing global trade risks. That is nearly double the 6.6% gain in the MSCI Emerging Markets index in that time. Foreign portfolio investors (FPIs) pumped $2.66 billion into Indian equities over that period and cut their short positions on the Nifty. A short seller borrows stock at a higher price betting its value will decline, at which point they buy the stock and pocket the profit. However, FPIs have started the June derivatives series – which runs from May 30 to June 25 – with about $2 billion in Nifty index futures shorts, the highest since February, according to Nuvama Alternative and Quantitative Research. In contrast, retail investors and high-net-worth individuals (HNIs), called the client category, turned bullish with long positions worth $1.54 billion on Nifty futures, compared with $546 million in shorts from early May. Indian benchmarks end May with gains as investors wait for growth data 'This divergence sets up a potential tug-of-war between institutional caution and retail optimism, and could lead to a brief pause in the market rally in June,' said Abhilash Pagaria, head of Nuvama. Indeed, the Nifty's gains have weakened in each month – from 6.3% in March to 3.5% in April and to about 2% in May. 'Markets appear to be waiting for some concrete cues before turning bullish,' said Sriram Velayudhan, VP at IIFL Securities. Velayudhan expects the Nifty 50 to trade between 24,300 and 25,300 points over the June series, compared with its current level of about 24,800 points. Analysts expect the Nifty to hit new highs by end-2025, but say a correction is likely in the next three months, according to a Reuters poll.
