Nykaa shares fall over 2% on reports of block deal

Shares of Nykaa saw a decline of over 2% in intraday trading due to likely block deals. The stock has recorded a muted performance this year, falling nearly 7% on a year-to-date basis. However, experts believe there is nothing fundamentally wrong with Nykaa’s business and consider it a better long-term investment option compared to Paytm. Kotak Institutional Equities has a ‘Buy’ tag on the stock with a price target of Rs 210, highlighting the healthy growth trajectory of Nykaa’s beauty and personal care categories. Jefferies also expects strong growth for Nykaa in the coming years.