NYKAA : Going Long
According to analysts' expectations, the price, revenue, and earnings forecasts appear attractive, with promising consolidated financial statements. In terms of shareholding patterns, mutual funds and DIIs have steadily increased their stakes in the company over the past few quarters. However, FIIs' shareholding pattern shows mixed sentiment without a clear trend, while retailers have significantly reduced their holdings, indicating a shift from weak hands to strong hands.
The net profit has more than doubled to INR 17.5 crore, and revenue has increased by 22% based on the Q3 results released recently, further confirming positive sentiment in the stock. Technically, the price has rejected from a key level, suggesting a high probability of a rally from this point. Thus, I have taken a position equivalent to about 1.25% of the net capital, aiming to target the near-term high for a profit of approximately 28% on the invested capital.
I anticipate a downside risk of about 25% in the event of a market crash. In such a scenario, I will consider adding to the position at those levels after assessing the overall macro and microeconomics and market dynamics at that time.
Feel free to follow me for updates on my positions and market insights. Additionally, I welcome your feedback and opinions in the comments section below this post.
Other posts related to this particular position will be attached underneath. Do check those out too.
Disclaimer: The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It's essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It's important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
The net profit has more than doubled to INR 17.5 crore, and revenue has increased by 22% based on the Q3 results released recently, further confirming positive sentiment in the stock. Technically, the price has rejected from a key level, suggesting a high probability of a rally from this point. Thus, I have taken a position equivalent to about 1.25% of the net capital, aiming to target the near-term high for a profit of approximately 28% on the invested capital.
I anticipate a downside risk of about 25% in the event of a market crash. In such a scenario, I will consider adding to the position at those levels after assessing the overall macro and microeconomics and market dynamics at that time.
Feel free to follow me for updates on my positions and market insights. Additionally, I welcome your feedback and opinions in the comments section below this post.
Other posts related to this particular position will be attached underneath. Do check those out too.
Disclaimer: The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It's essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It's important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
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