‘Best thing for value stock investor to go on really long holiday’, says Zerodha’s Nikhil Kamath on Nykaa listing

Zerodha and True Beacon co-founder Nikhil Kamath backed the fashion e-commerce unicorn on its blockbuster NSE listing. Kamath said that the best thing for a value stock right now is “to go on a really long holiday”.

“Nykaa lists at 1600 times price to earnings. They sell cosmetics online, Paytm next, best thing for a value stock investor might be to go on a really long holiday right about now,” Kamath tweeted.

Nykaa’s market capitalisation (m-cap) breached the Rs 1 lakh crore mark for a while after the stellar listing on the bourses during its market debut today. The share reached an intra-day high of Rs 2,129 on BSE, rising 89.24 per cent compared to the issue price. The stock saw some profit booking, leading to market cap going below Rs 1 lakh crore. At 10:55 am, the stock was trading at Rs 2,029 against the issue price of Rs 1,125. Market cap of the firm stood at Rs 95,878 crore on the BSE.

Meanwhile, Nykaa founder Falguni Nayar, a former investment banker, has made it to the ranks of the world’s richest. The entrepreneur, who owns about 50 per cent of Nykaa, is worth ~$6.5 billion as shares of the firm reached 2,203 after a rise of 10.09 per cent on the BSE on November 10.

Also read: Nykaa makes strong market debut, stock lists at 79% premium to issue price

Nayar owns her stake through two family trusts and seven other promoter entities. Her Ivy League-educated daughter and son, who run different Nykaa units, are among the promoters. She is India’s wealthiest self-made wealthiest billionaire, according to Bloomberg.

Biocon Executive Chairperson and a Padma awardee Kiran Mazumdar-Shaw appreciated Falguni Nayar for making ‘women entrepreneurs very proud.’ “Nykaa founder becomes India’s wealthiest self-made female billionaire – fantastic debut! Congrats Falguni Nayar – you make us women entrepreneurs very proud,” Mazumdar-Shaw tweeted.

Also read: Nykaa crosses Rs 1 lakh crore market cap on listing day

ABOUT NYKAA

Falguni Nayar, who helmed an investment bank prior to turning entrepreneur, founded Nykaa in 2012, just months before turning 50. Since then, the start-up has become the country’s top-most beauty retailer, raising its online sales through demo videos and endorsements by Bollywood celebrities and more than 70 brick-and-mortar stores.

Nykaa’s parent entity FSN E-Commerce Ventures is the first Indian unicorn led by a woman to hit the bourses. FSN E-Commerce has a diverse portfolio of beauty, personal care and fashion products, including its own products manufactured by the company.

Nykaa offers an omni-channel experience to consumers. It operates its businesses primarily through arrangements with beauty, personal care and fashion brands, delivery companies, manufacturers, distributors and other vendors, including suppliers of packaging material.

Also read: Should you invest in Nykaa's shares post bumper listing?