Nykaa shares gain even as Q4 PAT plummets 72% YoY. Should you buy, sell or hold?

Shares of FSN E-commerce Ventures rose despite the Nykaa owner reporting a 71.83% YoY drop in March quarter profit after tax at INR2.4 crore ($320,000). While Goldman Sachs suggested there was “a continuing trade-off between growth and profitability,” Kotak and Nuvama reiterated their buy rating. The two firms pointed to the company’s continued stable gross merchandise value growth, with Nuvama noting that the “focus on a mix of profitability and stable growth over superlative growth is evident”. Conversely, HDFC Securities maintained a reduce rating on the stock.