Nykaa - The Make Up Company

That’s probably not your dmat account but your broker trading account which is suggesting the added price as 0 as there were no purchase transaction done via the trading account for those bonus shares…Dmat account would simply show the number of shares held…

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Nykaa Pink Friday Sale delivers 75% growth, recording 8 lakh orders, that is over 400 orders every minute on Day 1.

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This is nothing short of impressive. However, market participants cannot see beyond the established narrative that is fueled by the quick and sharp drop in price.

I intend to add at the swing low of 160. The bearish narrative that has caught on, can atleast grant me this.

I have tried to compare, but cannot find a peer to Nykaa in BPC. Others are doing bits here and there, but nothing close to what Nykaa is doing IN BPC. I have been told, JIO and Amazon are competition, but I dont think so. The numbers tell a different story.

Valuation seems decent to me, for a company that can grow at 30% (which is because it is the undisputed leader).

I might be off by 20 odd % valuation wise, but no one can really be sure. I dont want to miss a great opportunity, which i believe it is, for the fear of buying expensive.

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Everyone seems to be worried about the exit of PE and VC funds. These are the prominent foreign investors buying their shares:
Norwegian Government Pension Fund Global
Canada Pension Plan Investment Board
Morgan Stanley Asia Singapore Pte
Societe Generale
Citigroup Global Markets Mauritius Private Limited
Hermes Investment Funds Public Limited Company
Ontario Teachers Pension Fund
BNP Paribas Fund
HSBC Funds
Goldman Sachs (Singapore) Pte
International Monetary Fund
Bofa Securities Europe Sa (Bank of America)

Rest of the shares are being absorbed by domestic mutual funds and retail investors.

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Samit Vartak of Sage One has given his opinion about Nykaa’s valuation in a Morningstsr Interview:

Have you invested in any of the Initial Public Offer (IPOs) which were listed in the recent bull run?

We have not found the valuations attractive. We liked Nykaa (FSN E-Commerce Ventures). We didn’t like the business models of the remaining tech IPOs. Most of them are loss-making and we don’t know when they will turn profitable.

If we are expecting 25% growth from an already existing listed player then we would expect 30% growth from Nykaa. That means you need to generate 3x in the next three years. We arrived at a fair value of Rs. 1.2 lakh crore market cap three years down the line. But this was the valuation of Nykaa when IPO came out. If we have to make 3x, the entry point has to be at Rs 40,000 crore market cap. So we did not invest in Nykaa. We would like to participate in such businesses but valuations have been a concern. You rarely find good valuations in an IPO.

Source: https://www.morningstar.in/posts/67749/samit-vartak-shares-his-multi-bagger-small-and-mid-cap-picks.aspx

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I don’t think I deleted it, although I do delete some of my post which I feel are not contributing to the flow.

That post was flagged by forum members and deleted by the admin. I think sometimes the admin delete posts thinking that the author is promoting the stock. I guess, it’s alright.

In that post I said how nykaa is getting publicity from the issue of bonus shares. And publicity is good.

Devaki responded with the accusation.

I am no expert in corporate gov, so I chose to make a note of it. And be on a look out for any such untowardly actions.

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