Nykaa E-Commerce Ltd. Unlisted Shares

Content

Nykaa E-Commerce Ltd. Essentials

ISIN

INE388Y01029

Face Value

₹10.00

Total Share

1,50,57,237

Total Income

₹2,452.65 Cr

Profit After Tax

₹61.65 Cr

EPS

₹41.53

P/E

3.06

P/B

127.00

Market Capitalisation

₹191.23 Cr

Enterprise Value

₹277.06 Cr

Earnings Yield

32.70 %

Sector

Consumer Discretionary

Sub-sector

Apparel & Accessories

Nykaa E-Commerce Ltd. Growth

Compounded Sales Growth

38.10%

1 Year
41.15%

2 Year
61.98%

3 Year

Pro Only

Compounded Profit Growth

168.04%

1 Year
71.01%

2 Year
29.82%

3 Year

Pro Only

Return On Equity

15.15%

2021
-8.21%

2020
-11.75%

2019

Pro Only

About Nykaa E-Commerce Ltd.

Nykaa is an Indian e-commerce company, founded by Falguni Nayar in 2012 and headquartered in Mumbai. It sells beauty, wellness and fashion products across websites, mobile apps and 76 offline stores.
Nykaa is primarily involved in selling of products which are manufactured in India as well as internationally. In 2015, the company expanded from online-only to an omnichannel model and began selling products apart from beauty. In 2020, it retails over 2,000 brands and 200,000 products across its platforms.
Nykaa is a unicorn startup, and as of 2020, was valued at ₹85 billion (US$1.2 billion)
From bringing the domestic brands, international brands, luxury and prestige brands, premium brands, niche and cult brands and expert advice and videos and a deep understanding of your needs and preferences to more than 72 Luxe and On-Trend and Kiosk Stores, an ever growing online community for beauty buffs, and a Beauty Helpline, the company goes out of their way to give customers only the very best.
With 2400+, 100% authentic brands Nykaa offers a well curated comprehensive selection of makeup, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories.
From the widest selection of genuine beauty products from around the world to beauty advice, Nykaa is truly passionate about catering to customer’s every beauty and wellness need.

Nykaa E-Commerce Ltd. IPO Details

The company has filed DRHP for an IPO for raising Rs 525 Cr.
The IPO is expected by the end of the year 2021.

Open Date

28 Oct 2021 at 10:00 AM

Closed Date

1 Nov 2021 at 05:00 PM

Listing Date

11 Nov 2021 at 10:00 AM

Nykaa E-Commerce Ltd.
Offer for Sale

₹ 4721.92 Cr

Nykaa E-Commerce Ltd.
Fresh Issue

₹ 630.00 Cr

Nykaa E-Commerce Ltd.
Total IPO Size

₹ None Cr

Nykaa E-Commerce Ltd.
Price Brand

₹ 1085 - ₹ 1125

Nykaa E-Commerce Ltd.
Min Order Qty

12 Shares

Nykaa E-Commerce Ltd. Retail Subscription Status

112.02x

Nykaa E-Commerce Ltd. QIB Subscription Status

91.18x

Nykaa E-Commerce Ltd. Non-Institutional Subscription Status

12.24x

Nykaa E-Commerce Ltd. Merger & Acquisition

Merger

Acquisition

Nykaa acquired 20 Dresses on 22nd March 2019.
Nykaa acquired Pipa.Bella on 12th April 2021.

Nykaa E-Commerce Ltd. Subsidiaries

Pipa Bella
20Dresses

Nykaa E-Commerce Ltd. Revenue Segmentation

Sale of products
Marketing support revenue

Marketplace Services

Nykaa E-Commerce Ltd. Product & Services

Makeup
Skincare
Haircare
Bath and body
Fragrance
Grooming appliances
Personal care
Health and wellness categories

Nykaa E-Commerce Ltd. Assets

The company has fixed assets worth Rs 68.7 Cr.

Nykaa E-Commerce Ltd. Industry Overview

Industry Statistics

The beauty and wellness market in India was valued at INR 901.07 Bn in 2018
With the rise in awareness about holistic wellbeing among people in India, spending on beauty and wellness products and services has increased.
According to the Indian Beauty & Hygiene Association (IBHA), the per capita spending on beauty and personal care products was around INR 450 per annum in 2017, which is expected to increase during the 2019-2024 period.
The rise in the income of the middle-class has propelled the demand for beauty products and wellness services. In India, the labour force participation rate of females in 2017 was 22.05%, which increased from 21.27% in 2012. With more women joining the workforce in tier 1 cities, their purchasing power has increased. The rise in their disposable incomes has resulted in the escalating demand for beauty products, and salon and spa services.

Future Prospects

The beauty and wellness market in India has valued at INR 901.07 Bn in 2018 and is forecast to reach INR 2,463.49 Bn by 2024, expanding at a compound annual growth rate (CAGR) of ~18.40% during the 2019-2024 period.

Nykaa E-Commerce Ltd. Strengths

The company has a first-mover advantage in this sector and has been successful in being the largest by market cap.

Cash flow from operations of the company has increased by a whopping 913% in this financial year which is primarily due to two reasons: Firstly, Cost-cutting measures taken up by the company and secondly, the company became profitable in this financial year. This signifies it is in it's growth stage and way ahead of its competitors.
The net profit ratio of the company has increased significantly which is because the company enjoyed the benefits of tax shield due to the losses accumulated over the previous years (since the inception of the company).
The Profit before tax margin of the company has increased significantly which is because the company had a significant decrease in finance cost due to the decreased leveraging (debt to equity) of the company.

Nykaa E-Commerce Ltd. Shortcomings

The company became profitable in F.Y 2021, 9 years after its inception. This signifies it still has a long way to go before becoming a stable corporation.

Nykaa E-Commerce Ltd. Opportunities

In India, people nowadays have become conscious about their appearance and are constantly spending money to enhance the way they look. This has allowed for the significant growth of the beauty and wellness services segment, with consumers paying frequent visits to salons.
The rise in the income of the middle-class has propelled the demand for beauty products and wellness services. In India, the labour force participation rate of females in 2017 was 22.05%, which increased from 21.27% in 2012. With more women joining the workforce in tier 1 cities, their purchasing power has increased. The rise in their disposable incomes has resulted in the escalating demand for beauty products, and salon and spa services.

Nykaa E-Commerce Ltd. Threats

The threat of substitutes is high as there are a lot of sellers with similar products and services, and there is no switching cost for customers
The threat of new entrants is high, as there is very little cost involved in setting up an e-commerce website.
The bargaining power of customers is very high as there are many players in the market with similar products and there is no switching cost. Buyers prefer the company that offers the best price among other factors
Consumers demand quality beauty and wellness products and services at affordable prices. Though brand awareness is high among Indian consumers, they tend to switch brands if similar quality products are available at lower or similar prices.