3. Welcome to www.nykaa.com ( "Site" or "NYKAA " ). The website www.nykaa.com is owned and operated by NYKAA E-Retail Private Limited (" NYKAA "), and
the retail stores i.e. NYKAA LUXE and NYKAA On Trend is operated under FSN Brands Marketing Private Limited ("FSN B") a company incorporated under
the provisions of the Companies Act, 2013 with its registered office at 104, VASAN UDYOG BHAVAN, Sun Mill Compound, S.B.MARG, TULSI Pipe Road,
Lower Panel, Mumbai 400 013 India. NYKAA and FSN B are together referred to as NYKAA and the Site and retail stores are together referred as Platform.
You may be accessing our Site from a computer or mobile phone device (through an IOS or Android application, for example) and these Terms of Use govern
your use of our Site and your conduct, regardless of the means of access.
You may also be using our interactive services (" Interactive Services "), such as our Beauty Suggestions, Beauty Book etc. and the Beauty Services wherein
you can book any beauty service provided by our beauty partners (" Beauty Services ") and these Terms of Use also govern your use of the Interactive and
Beauty Services. These Terms of Use govern all the products offered on the Platform including the Interactive and Beauty Services.
The Platform is only to be used for your personal non-commercial use and information. Your use of the services and features of the Platform shall be governed
by these Terms and Conditions (hereinafter " Terms of Use ") along with the Privacy Policy, Shipping Policy and Cancellation, Refund and Return
Policy as modified and amended time to time
.ou are responsible to ensure that your access to this Platform and material available on or through it are legal in each jurisdiction, in or through which
NYKAA reserves the unilateral right to change the particulars contained in the Terms of Use or the Policies from time to time and at any time, without notice to
its users and in its sole discretion. If NYKAA decides to change the Terms of Use or Policies, NYKAA will post the new version of the Terms of Use or the
Policies on the Site and update the date specified above.
We understand the importance of safeguarding your personal information and we have formulated a Privacy Policy, to ensure that your personal information is
sufficiently protected. Apart from these Terms of Use, the Privacy Policy shall also govern your visit and use of the Site. Your continued use of the Site implies
that you have read and accepted the Privacy Policy and agree to be bound by its terms and conditions. You consent to the use of personal information by
NYKAA in accordance with the terms of and purposes set forth in the Privacy Policy, the same may be subject to amendment from time to time at the sole
discretion of NYKAA
NYKAA shall in no way be held responsible for examining or evaluating User Content, nor does it assume any responsibility or liability for the User Content.
NYKAA does not endorse or control the User Content transmitted or posted on the Site by you and therefore, accuracy, integrity or quality of User Content is
not guaranteed by NYKAA. You understand that by using the Site, you may be exposed to User Content that is offensive, indecent or objectionable to you.
Notice to Recipient
Confidential
4. Company Profile
Business Description
Nykaa is India’s leading omnichannel beauty destination that commenced operations in
2012.
Nykaa is preferred since it is exclusively focused on beauty, fashion and wellness
products.
The company offers a wide range of products across various categories such as
makeup, skincare, fragrance, haircare, personal care, bath and body, grooming
appliances, health and wellness.
Nykaa’s popularity is that it offers users a wide variety of brands to choose from. It
includes local brands, premium brands, luxury and prestige brands, international
brands, and niche and cult brands. The company currently has more than 2,400 brands
on its platform.
Incorporated: 2012; Headquartered: in Mumbai, Maharashtra, India.
KEY FINANCIALS
(Rs.
Crore)
2019 2020 2021E 2022
Revenue 35,411,360 24,408,960 17,675,330 11,113,940
% Growth - 1.31 -0.35 -0.5
EBITDA - - - 1,930,030
% Margin 5.02 5.16 7.09 5.04
EBIT 1,101,420 1,045,490 309,170 -62,690
% Margin - - - 425.8%
Net Income -318,120 -220,000 -443,520 -258,610
% Margin 10.31% 8.37% 24.01% -10.85%
Net Debt
Last 5 Years Share Price Performance
Share Price @
Jun 09, 2022,
16:00
Rs.
1454.10
Financial Year
Share
Outstanding:
477.4m FY19 FY20 FY21 E
Equity Value: Rs.
710.96
B
EV/Sales 0 0 20.08
Net Debt: Rs.
5.93B
EV/EBITDA 0 0 368.47
Enterprise
Value:
Rs.
711.16
B
P/E 0 0V 761.01
5. Nykaa is India’s leading omnichannel beauty destination that commenced operations in 2012.
Nykaa is preferred since it is exclusively focused on beauty, fashion and wellness products.
The company offers a wide range of products across various categories such as makeup,
skincare, fragrance, haircare, personal care, bath and body, grooming appliances, health and
wellness.
Nykaa’s popularity is that it offers users a wide variety of brands to choose from. It includes
local brands, premium brands, luxury and prestige brands, international brands, and niche
and cult brands. The company currently has more than 2,400 brands on its platform.
Incorporated: 2012; Headquartered: in Mumbai, Maharashtra, India.
Business Description
6. Last 5 Years Share Price Performance
Share Price @ Jun 09, 2022, 16:00 Rs. 69.65 Financial Year
Share Outstanding: 477.4m FY19 FY20 FY21 E
Equity Value: Rs. 710.96B EV/Sales 0 0 20.08
Net Debt: Rs. 5.93B EV/EBITDA 0 0 368.47
Enterprise Value: Rs. 711.16B P/E 0 0V 761.01
8. Company Profile (CONT.)
NAME TITLE
Falguni Nayar Founder & CEO
Sanjay Suri Chief technology officer
Arvind Aggarwal CFO
Shalini Raghavan Chief marketing officer
Pratik Bujade Company secretary
Sachin Parekh Business Head
Surender Mehta Chief Human Resource Manager
Manoj Jaiswal Chief officer – Supply chain
Kingshuk Basu Retail Operations
Gopal Asthana Chief Business Officer- Fashion
BOARD & MANAGEMENT Top shareholders
Sanjay nayar family trust 25.38%
Falguni nayar family trust 22.04%
Harpinder pal singh bagga 8.6%
Sunil kant munjal 4.48%
Narotam shaikh saira 3.61%
Stead view capital 3.46%
TPG Growth 3.44%
Light house fund 3.07%
Shareholding Pattern
NYKAA IPO seeking about Rs 5,400 cr gets second highest bids ever at
Rs 4.38 lakh cr.
In a bleak 2020, beauty and fashion retailer Nykaa showed strategic
nimbleness to stay strongly in the game, even managing to raise funds and
become a unicorn in the process.
NYKAA hits new all-time low, slumps 9%; down 34% in a month
Indian beauty company NYKAA looks to physical retail expansion to meet
consumer demand for offline sales
RECENT KEY DEVELOPMENTS
Sanjay nayar
family trust ,
25.38%, 34%
Falguni nayar
family trust ,
22.04%, 30%
Harpinder pal
singh bagga,
8.60%, 11%
Sunil kant
munjal , 4.48%,
6%
Narotam shaikh
saira, 3.61%,
5%
Stead view
capital, 3.46%,
5%
TPG Growth
, 3.44%, 5%
Light house
fund, 3.07%,
4%
Shareholding Pattern
9. NAME TITLE
Falguni Nayar Founder & CEO
Sanjay Suri Chief technology officer
Arvind Aggarwal CFO
Shalini Raghavan Chief marketing officer
Pratik Bujade Company secretary
Sachin Parekh Business Head
Surender Mehta Chief Human Resource Manager
Manoj Jaiswal Chief officer – Supply chain
Kingshuk Basu Retail Operations
Gopal Asthana Chief Business Officer- Fashion
BOARD & MANAGEMENT
10. Top shareholders
Sanjay nayar family trust 25.38%
Falguni nayar family trust 22.04%
Harpinder pal singh bagga 8.6%
Sunil kant munjal 4.48%
Narotam shaikh saira 3.61%
Stead view capital 3.46%
TPG Growth 3.44%
Light house fund 3.07%
Shareholding Pattern
11. NYKAA IPO seeking about Rs 5,400 cr gets second highest bids ever at Rs 4.38
lakh cr.
In a bleak 2020, beauty and fashion retailer Nykaa showed strategic nimbleness to
stay strongly in the game, even managing to raise funds and become a unicorn in
the process.
NYKAA hits new all-time low, slumps 9%; down 34% in a month
Indian beauty company NYKAA looks to physical retail expansion to meet consumer
demand for offline sales
RECENT KEY DEVELOPMENTS
13. COMPANY PROFILE (CONT.)
BROKER ESTIMATES
BROKER DATE ANALYST TARGET RECOMMENDATIO
N
EDELWEISS
SECURITIES
MARCH,202
2
NIKHIL
SHAH
1859 BUY
JEFFERIES MARCH,202
2
DAVID KATZ 2300 BUY
JM
FINANCIALS
FEBRUARY,
2022
SHRENIK
BACHAWAT
2574 REDUCE
RECENT BROKER VIEWS
Fashion’s mix in the overall GMV may continue to rise and that GMV to revenue conversion
would continue to look lower as revenue includes take-rate in case of the marketplace
business model and fashion segment is predominantly marketplace.
Assuming 60 per cent penetration in elite households and 40 per cent penetration in affluent
households enables over 2.2 crore unique shoppers for NYKAA by FY26. There remains
potential upside from incremental users in a household or further penetration,“
NYKAA’s platform with focus on 3Cs – content, Duration and convenience with a focus on
authenticity – has made it a dominant online BPC platform in the country
BROKER RECOMMENDATION
0
2
4
6
8
10
12
14
16
CURRENT 1 WEEK AGO 1 MONTH AGO 3 MONTHS
AGO
5 5
2 1
10 STRONG SELL
10 SELL
14 HOLD
16 BUY
16 STRONG BUY
Company’s are by and large comfortable with the company’s response. The
company’s explanation on the Able Delight acquisition appears reasonable
(especially when considering the unit’s state of operation immediately
prior to the acquisition, the large back order, and the business reshuffling
since the acquisition), and the Hanwei purchase also does not appear to be
self-dealing. In our opinion, while there are certainly areas that the
company can and should improve upon, particularly with regard to internal
control and timely disclosure…We are maintaining our Market Outperform
rating and $21 price target on the shares of China Valves. We continue to
view the company as a fast growing enterprise with solid fundamentals and
strong business prospects. Our price target is based on the shares trading
at 13x our 2011 EPS estimate of $1.64
Sample of other Companies
14. BROKER DATE ANALYST TARGET RECOMMENDATION
EDELWEISS SECURITIES MARCH,2022 NIKHIL SHAH 1859 BUY
JEFFERIES MARCH,2022 DAVID KATZ 2300 BUY
JM FINANCIALS FEBRUARY, 2022 SHRENIK BACHAWAT 2574 REDUCE
BROKER ESTIMATES
15. Fashion’s mix in the overall GMV may continue to rise and that GMV to revenue conversion would
continue to look lower as revenue includes take-rate in case of the marketplace business model
and fashion segment is predominantly marketplace.
Assuming 60 per cent penetration in elite households and 40 per cent penetration in affluent
households enables over 2.2 crore unique shoppers for NYKAA by FY26. There remains potential
upside from incremental users in a household or further penetration,“
Nykaa’s platform with focus on 3Cs – content, curation and convenience with a focus on
authenticity – has made it a dominant online BPC platform in the country
RECENT BROKER VIEWS
16. Company’s are by and large comfortable with the company’s response. The company’s
explanation on the Able Delight acquisition appears reasonable (especially when considering
the unit’s state of operation immediately prior to the acquisition, the large back order, and
the business reshuffling since the acquisition), and the Hanwei purchase also does not
appear to be self-dealing. In our opinion, while there are certainly areas that the company
can and should improve upon, particularly with regard to internal control and timely
disclosure…We are maintaining our Market Outperform rating and $21 price target on the
shares of China Valves. We continue to view the company as a fast growing enterprise with
solid fundamentals and strong business prospects. Our price target is based on the shares
trading at 13x our 2011 EPS estimate of $1.64”
Sample of other Companies
17. 0
2
4
6
8
10
12
14
16
CURRENT 1 WEEK AGO 1 MONTH AGO 3 MONTHS AGO
5 5
2
1
10 STRONG SELL
10 SELL
14 HOLD
16 BUY
16 STRONG BUY
BROKER
RECOMMENDATION
18. COMPANY PROFILE (CONT.)
COMPANIES ACQUIRED
Name of
companies
Acquisitio
n date
Activities Price
Earth rhythm 22nd april,2022 Skin care
products
₹41.65
crore
Nudge
wellness
22nd april,2022 Health
products
₹3.6 crore
KICA 22nd april,2022 Women
clothing
₹4.51
crore
Employee Count & Attrition (COSMETIC
INDUSTRY)
19. Name of companies Acquisition date Activities Price
Earth rhythm 22nd april,2022 Skin care products ₹41.65 crore
Nudge wellness 22nd april,2022 Health products ₹3.6 crore
KICA 22nd april,2022 Women clothing ₹4.51 crore
NYKAA
COMPANIES ACQUIRED
