Nykaa Eyes ₹237 Breakout: SEBI RA Rohit Mehta Sees It As A Standout Performer In 2025
Synopsis
The analyst highlights a rounded bottom formation and rising investor confidence despite the stock trading 54% below its all-time high.
Nykaa is displaying resilience across the board and quietly becoming one of 2025’s standout performers despite still trading 54% below its all-time high, according to SEBI-registered analyst Rohit Mehta.
At the time of writing, Nykaa shares were trading at ₹197.42, down ₹0.71 or 0.36%
He highlights Nykaa’s solid 20% up move this year from ₹164 to ₹197, supported by a robust fourth-quarter (Q4) financial performance, where consolidated net profit surged 193% year-on-year to ₹20 crore, and revenue grew 24% to ₹2,062 crore.
Mehta points to strong growth in Nykaa’s core beauty and personal care segment, with gross merchandise value up 30.8% year-on-year, along with improved operational efficiency reflected in an EBITDA margin increase to 6.5% from 5.6%.
He also notes that the company’s inclusion in the MSCI Global Standard Index is expected to drive foreign inflows of about $199 million, improving market visibility.
On shareholding, Mehta observes promoter holding stable at 52.16%, a decrease in FIIs from 9.05% to 8.83%, and an increase in DIIs from 23.56% to 25.20%.
He flags risks including the stock’s high valuation at 42.9 times book value, lack of dividends, and a modest three-year average return on equity of 2.97%.
On technical charts, Mehta sees Nykaa forming a rounded bottom pattern signaling accumulation and trend reversal.
He pegged support in the ₹154–₹164 zone, which has consistently seen buying interest.
A breakout over resistance at ₹237 with volumes indicates potential for upside, followed by resistance at ₹315.
He added that the all-time high of ₹428.65 is a long-term target, which is likely to be achieved if the momentum sustains.
On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.
The stock has risen 19.9% so far in 2025.
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