Every time I look at Nykaa and think of scaling up or for that matter at any other retailer (some new IPOs also coming up in Electronics etc.), I hold back and see the stupendous growth of Dmart & Trent and think of rather scaling them up instead…
Nyka is 62,000 cr company today and Trent - Westside, Zudio, Utsa & Star is a 50,000 cr company. Both in fashion, both with hyper growth and excellent management…I would choose bigger allocation to Trent here for a proven track record and better established business model. Would scale up Nykaa but at a much slower pace…I am neither getting it cheap nor is it a small company by any means - It is bigger than what Tata’s well performing decades old retail company…would only bet some part on it not because of the retail aspect but because of the DNA of a new age company…
In this disruptive world of business, maybe that DNA works for this company going ahead…
Disc: Invested in Trent, Dmart & Nykaa hence biased & critical. Not eligible for any recommendations. Post only for academic purposes.
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