At Price to Sales of 15x and EV/EBITDA of 293, no matter the growth and management quality (both look good) it should take some time to make money in this stock. Trent is equally expensive (given the current business size and business dynamics) and we shouldn’t look for high returns there either.
In both cases, the risk seems higher than the reward and Nykaa is even riskier given that business model is still evolving and the market cap is already that of an established giant.
Disclosure- Tracking position in Nykaa for learning perspective, no position in Trent.
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