The FSN E-commerce Ventures, which was widely known as Nykaa, rose by 4.6 percent on February 23, because the company finally completed a delayed litigation with L’Oreal Share this traded at Rs 1,386.55 in BSE, up 4.09 percent, with market capitalization RS 65,705 Crore at 1:40 a.m The company told the exchange on February 22 that litigation with L’Oreal SA had resolved. “The properly certified copy of the Delhi High Court order on January 21, 2022 was received by the company on February 21 In November 2019, L’Oreal SA has submitted a case against the FSN E-Commerce Ventures and Nykaa e-retail, accusing the copyright infringement and passing against Nykaa in connection with its trademark ‘Maybelline’ and the product color combination ‘Maybelline new eternal drama gel liner’ .
The District Court in Delhi issued the command of the former parte, who opposed Nykaa preferred to appeal before the Delhi High Court. The two companies have decided to make a completion approved by the District Court and the Delhi High Court As per the settlement requirements agreed upon by the two companies, the modified artwork adopted by Nykaa was approved by L’Oreal. Furthermore, L’Orialial will suppress damage relief, account rendition and any cost of Nykaa, and both parties will not make other claims to other or claims related to the payment of fees or costs in connection with the settlement, FSN e-commerce said .
JM Financial expects Nykaa to rally 60 percent on March 2023 Following corrections in technology stocks globally, Nykaa’s shares fell 48 percent from the highest record of Rs 2,574 in December 2021. Investors appeared to have raised concerns over growth and profitability in the future JM Financial felt the correction of stock prices recently provided a very encouraging risk prize and therefore, he had reaffirmed the ‘buy’ rating on shares with March 2023 target of Rs 2,120, around 60 percent reversed.
The broker believes that Nykaa remains a different player with the focus on 3 cs – content, curation and comfort – creating a rapidly growing consumer base and loyal. “The company’s unique solution for consumers and pain brands creates a long-term embedding kekek which is likely to bear the dominance of NYKAA in BPC (beauty, personal care) while creating a niche position in mode JM Financial estimates that Nykaa to have 22 million unique buyers at BPC and 10.9 million buyers in mode. “For BPC, this implies the addition of 14.1 million additional buyers.”
According to BCG, India is expected to have 16 million ‘elite’ households with gross annual income above $ 30,800 and 33 million ‘rich’ households with annual income between $ 15,400 and $ 30,800 in 2025 Assuming a penetration of 60 percent in elite households and 40 percent penetration in rich households allows more than 22 million unique buyers to Nykaa by FY26. There is still a reverse potential of incremental users in households or further penetration,” JM Financial said.
On December 31, 2021, Nykaa had 96 stores in 45 cities in India with companies planning to reach 300 stores in 100 cities Aggressive encouragement for Omni channels has raised concerns about the lack of trust in digital and the need for higher capex investment. But JM Financial feels that Nykaa must continue to pursue the expansion of Omni-Channel because it allows companies to 1) provide a touch and axis experience, 2) to obtain customers organically, and 3) gain the share of consumer wallets when digital penetration takes its own time to get the majority The Nykaa platform focuses on 3C – content, curation and comfort with a focus on authenticity – has made it a dominant BPC online platform in this country.