Nykaa Hosts Investor Meet & Lays Down Growth Plans For The Various Segments Of The Business

The focus shifts to Nykaa that is the other stock that is in focus today. The company met investors and laid out growth plans for the various segments of the business. Mangalam is here with the key takeaways. Mangalam, what did the management have to say? Well, you know the investment investment is already underway, still underway. What we know is that the presentations that they are likely to make through the course of the day. Its a long presentation, over 220 slides. They have uploaded that to the exchanges. So from that we can infer a bunch of things. There are aggressive growth plans that the company is making for omnichannel retail which is their beauty and personal care business. They expect the growth for the next 4 years to be compounding in mid 20s. The CAGR over FY24 to FY20 8. Retail GMV growth, what I was talking about mid 20s was the overall gross merchandise value. The retail GMV growth will actually be one notch higher, growing at over 40% CAGR over the next four years. The Street was a little worried about the margins out here after the expansion that has happened. They were wondering whether they can expand it further. So seems like they can't. But you know even at current levels of the revenue is growing at 40% plus there is something that the state would like if they maintain the margins at 25.5% for the fashion business that is likely to be their growth and margin driver going forward. 2 1/2 to three times increase in net sales value over the next three years. 1:50 to 200 basis points improvement in gross margins over the next three years. They're targeting 1300 to 1600 basis points EBITDA margin improvement in the next three years as well, taking it to mid single digits by FY20 7 and steady state EBITDA margins out here, they expect to be more than 10%. So that's a positive. NYC Global, all the global brands that they sell, they expect that business to triple from current levels in by FY20. 8. Remember this number was less than 1/5 just about four years ago in FY21. So from those levels to FY20 8 that this could actually see your growth of 15 times. And finally, the big growth driver for them, the wholesale business, Nykaa Superstore as they call it, they have FY25 targets of improving gross margin, gross margins. Reducing fulfillment costs and ambition to reach 9 times FY24 gross merchandise value and three and three to 5% EBITDA in the medium term itself. So strong tall targets, ambitious plans for the company. Let's see what the analysts now have to say of this Investor Day as they come out of it and whether they actually put ink to paper and increase their estimates as well. Absolutely. That, of course, is going to be the driving factor. Thanks, Mangalam for that. Nykaa in focus as of now, still down about a percent and a half. We've got Mitesh.