Shares of Nykaa (listed as FSN E-Commerce Ventures Limited) were in focus today after the fashion retailer received board’s nod to sign an agreement with the Middle East’s Apparel Group, a global fashion and lifestyle retail conglomerate headquartered in the United Arab Emirates (UAE).The move will help the firm enter the Gulf Cooperation Council (GCC) market in the Middle East. The Apparel Group is one of the largest omnichannel retailers in the Middle East. It is home to more than 75 lifestyle and beauty brands with over 2,000 stores in 14 countries.
Nykaa stock surged 2.29 per cent to Rs 1,314.65 amid a falling market in early trade today. The shares are trading higher than the 5-day moving averages but lower than 20-day, 50-day, 100-day and 200-day moving averages. The stock has slipped 38.28 per cent this year and fallen 4.21 per cent in a month.
ALSO READ: Nykaa forays into the Gulf countries through its first international alliance with Apparel Group
It touched a 52-week high of Rs 2,574 on November 26, 2021 and hit a 52-week low of Rs 1208 on May 12, 2022 on BSE. Total 0.17 lakh shares of the firm changed hands amounting to a turnover of Rs 2.21 crore. Market cap of the firm rose to Rs 61,573 crore on BSE.
The GCC market comprises Kingdom of Bahrain, the State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia and the United Arab Emirates (UAE).
“Nykaa will leverage the Apparel Group’s robust retail infrastructure network and deep market relationships to build distinctive Gulf Cooperation Council (GCC) focused beauty offerings in the UAE, Kingdom of Saudi Arabia, Qatar, Oman, Kuwait and Bahrain,” the Falguni Nayar- owned firm said in a communication to bourses.
ALSO READ: Nykaa announces bonus issue of shares, stock zooms 11%
In a separate development on Monday (October 10), the fashion retailer fashion retailer announced a bonus issue of shares in the ratio of 5:1. Those holding one share of Nykaa will be entitled to five shares of the company during the bonus issue. Enthused by the bonus issue , stock of the firm zoomed 10.83 per cent intraday to Rs 1,411.8 on BSE. The firm fixed Thursday, November 3, 2022, as the record date for the purpose of determining members eligible for bonus equity shares.
Nykaa reported a healthy 33.4 per cent rise in consolidated net profit in the June quarter at Rs 4.55 crore against a profit of Rs 3.41 crore in the year-ago period. However, profit of the beauty e-commerce platform fell 47.6 per cent from Rs 8.56 crore in the March 2022 quarter (Q4FY22). Revenue from operations climbed 40.5 per cent to Rs 1,148.42 crore in the quarter under review as against Rs 816.991 crore in the same quarter last fiscal.
Meanwhile, Sensex and Nifty were trading lower in a highly volatile market today. While Sensex was down 183.09 points at 58039.01, Nifty lost 53.20 points to 17278.60 in early trade.