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Better Days has come for Nykaa, long term Growth story started!!Hello Traders & Investor, Better day's has come for Nykaa, Earlier stock was in highly downtrend it was making lower lows and lower highs pattern but now there is no more lower lows on chart and it has given a wedge pattern breakout in yesterday session. Now this stock is ready to fly in blue sky. This is definitely giving a best enty for short term as well as long term. FSN E-commerce Ventures Ltd. (FSNEV) popularly known as "Nykaa" is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it. Price is above 200-EMA and MACD is already given bullish crossover on chart. this is a clear indication that buyers are taking control on it. KEY POINTS Leading Digital Company:- Nykaa is the largest specialty beauty and personal care platform in India in terms of value of products sold in FY21 and one of the fastest growing fashion platforms in India based on growth in GMV. It has the highest average order value (AOV) among leading online beauty and personal care platforms in India. Business segments:- A) Nykaa - Beauty and Personal care (90% of the revenue) The company offers 2,96,122 SKUs from 3,118 global and domestic brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories online beauty and personal care platforms in India. Apart from the tie-ups with several suppliers, the company also has its own brands such as “Nykaa Cosmetics” , “Nykaa Naturals” and “Kay Beauty”. ** Business Model:-** The segment operates based on the ‘’ Inventory led model’’ where the company procures products in bulk and stores them at their warehouse and sells them upon receiving orders from its customers. B) Nykaa Fashion:- Apparel and Accessories (9% of the revenue)** The segment was only launched in 2018 and now it has 1,553 brands and more than 4.3 million SKUs with fashion products across five divisions: women, men, kids, tech and home. **Business Model:-** This segment has different operating models such as sale or return (SOR), marketplace and just-in-time (JIT) inventory model. Diverse Portfolio of Owned Brands:- The Co. has a portfolio of 15 owned brands. During FY22, the Co. introduced five additional owned brands namely- Dot & Key, Nykaa SkinRx, Pipa Bella, Gajra Gang, and IYKYK. Acquisitions:- During FY22, the company’s wholly owned subsidiary ‘Nykaa Fashion Private Limited’ acquired the brand ‘KICA’ for a consideration of up to Rs. 45.1 million. In April 2022, the Co. acquired 18.5% stake in Earth Rhythm Private Limited and 60% stake in Nudge Wellness Private Limited. Market Cap ₹ 47,854 Cr. Current Price ₹ 168 High / Low ₹ 192 / 114 Stock P/E 2,440 Book Value ₹ 4.88 Dividend Yield 0.00 % ROCE 5.52 % ROE 1.42 % Face Value ₹ 1.00 Debt ₹ 966 Cr. EPS ₹ 0.07 PEG Ratio 115 Promoter holding 52.3 % Intrinsic Value ₹ 5.26 Pledged percentage 0.00 % EVEBITDA 146 Change in Prom Hold -0.02 % Profit Var 5Yrs 21.2 % Sales growth 5Years 55.0 % Return over 5years % Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades. Dear traders, If you like my work then do not forget to hit like and follow me, and guy's let me know what do you think about this idea in comment box, i would be love to reply all of you guy's. Thankyou.
NSE:NYKAALong
by TraderRahulPal
2
Cantabil Retail India Ltd || Investment stock Pick for long TermAbout Company:- Cantabil Retail India Ltd was incorporated in 1989 and started its readymade garments manufacturing and retailing business in the year 2000. Market Cap ₹ 1,652 Cr. Current Price ₹ 1,011 High / Low ₹ 1,595 / 800 Stock P/E 28.2 Book Value ₹ 111 Dividend Yield 0.25 % ROCE 21.8 % ROE 26.8 % Face Value ₹ 10.0 Debt ₹ 300 Cr. EPS ₹ 35.8 PEG Ratio 0.50 Promoter holding 75.0 % Intrinsic Value ₹ 539 Pledged percentage 0.00 % EVEBITDA 12.1 PROS Company is expected to give good quarter Company has delivered good profit growth of 56.1% CAGR over last 5 years Well Stock is good and trading at discounted price, it can give you huge returns as business model is really futuristic, let me tell you more about this ticker like product portfolio, online revenue, Expansion, focus etc.. Product Portfolio Men’s Wear (86%) - Formals, Casuals, Ultra Casuals, Woollen, Knitwear Women’s Wear (9%) - Shirts, Tops, Leggings, Kurtas, Kurtis, Capri, Pants, Jeans Kids Wear (2%) - Shirts, T-shirts, denim, trousers, Culottes, dresses, tops, jeggings, shorts Accessories (3%) - Innerwear, Belts, Socks, Ties, Handkerchief, Deo, etc. Online Revenues As of now, online sales generate 1% of the company's total revenue and the Company expects online business to grow to nearly 5% in the next 3-4 years. But the Co. is focused on expanding via brick-and-mortar stores especially in the tier 2 and tier 3 cities and towns. Manufacturing Capacity The company has established a 1.5 lakh sq.ft. state of an art manufacturing facility in Bahadurgarh, Haryana with a capacity to produce 10 Lakh garment pcs./p.a viz, equipped with best brand machines from JUKI, Durkopp, Brother, Ngai Shing, Kansai, Pfaff, Maier, Siruba, Sako and latest finishing equipment using hot and cold steam foam finishers from Veit and Macpi. Expansion In FY22, Company added 58 new stores and invested in building a new multi-floor warehousing facility cum corporate office to make it hassle-free and improve controls over inventory and warehousing management significantly. Distribution Network The company sells its products under its brand Cantabil, Kenaston, Crozo, and Lil Potatoes through 378 Showrooms/ Stores and 414 Outlets in 18 states. Asset Light Model The company operates with an asset-light model wherein only about 1/3rd of the apparel are manufactured in-house at its fully integrated facility in Bahadurgarh. And sources another 1/3rd of its requirements from dedicated job workers and the balance ~1/3rd is purchased on a FOB basis directly from manufacturers. Focus The company is focused on expanding via brick-and-mortar stores in the country especially targeting the tier 2 and tier 3 cities and towns where it gets to take advantage of the first mover benefit. I have done my analysis about this ticker. Stock is looking attractive at these levels. So if anyone wants to go long can go for target of 1600 and keep stop loss at 800,,but this is kind of stock where you can create wealth in long term. Disclaimer:- I already have investment in this from down levels and i am holding this for long term. If anyone likes my work then please like, follow and comment. Thankyou:-))
NSE:CANTABILLong
by TraderRahulPal