Skip to main content

Alkyl Amines buy or not

 Not many of us know how to analyse a chemical sector stock. Through this blog, I will try to help you understand the industry in the simplest possible way. Also, we will end the discussion with a comparison of Alkyl Amines with Balaji Amines and other chemical companies like Deepak Nitrite. Table Of Contents 1. Alkyl Amines Business Alkyl Amines Chemicals Ltd. was started   in 1979 by  Mr Yogesh Kothari . It  operates in  a very small segment of the chemical industry -  the   amines  and is currently one of the largest manufacturer in India (around 50%), along with Balaji Amines. Amines play a major role in the pharmaceutical industry and agrochemicals. These are primarily used as a solvent. Alkyl Amines' Business comprises of 3 major segments:- • Aliphatic Amines Methyl amines and Ethyl amines are the aliphatic amines used to make  different types of derivatives. These can also be sold directly and are used by Alkyl Amines t o produce vario...
Post a Comment

Should I invest in Nykaa IPO | Nykaa IPO buy or not | Nykaa IPO analysis

 Confused whether or not to invest in Nykaa? This blog post will cover the business, financials and valuations and help you reach out on a decision.

    • Nykaa Company Overview

    Nykaa is an India based e-commerce business which was started way back in 2012 by Mrs. Fulguni Nayar. It has various stores selling cosmetic products, but the major revenue comes from the online business.

    Let us now look at the business model of Nykaa to understand how Nykaa makes money.


    • Nykaa Business Model

    Nykaa is trying to create a marketplace, just like Amazon where different sellers can list their products under "Nykaa's name". In this process, Nykaa has already been able to collaborate with various fashion brands and cosmetic brands, including Lakmé and L'Oreal.

    Along with that, Nykaa is focused on growing its own products under Nykaa fashion and cosmetics range under Nykaa Cosmetics.


    • Nykaa Promotors

    Mrs. Fulguni Nayar started out Nykaa in 2012 at the age of 50 years. Her children are also involved in running and growing Nykaa. Even though Nykaa is launching its IPO, the promotors will be offloading only around 1.6% of their shares. This clearly shows a strong confidence of the promotors in the business.

    Nykaa logo


    • Nykaa Financials

    The financials of Nykaa are also favourable. The total sales have been consistently rising. Along with that, the company kept on reducing their losses every year and now has eventually become profitable. Also, the promotors will continue to hold more than 50% shares, even after the IPO listing, which is another positive sign.

    Nykaa Sales Growth
    Nykaa Sales Growth
    Source - Groww


    Nykaa Profits
    Nykaa Profits
    Source - Groww


    • Nykaa Future Prospects

    Nykaa operates primarily in the cosmetics industry, which is growing. It is further trying to penetrate into lifestyle and fashion industry. Once Nykaa becomes a monopoly, it will also have pricing power and thus increasing margins which in turn will lead to increased profits. Nykaa has already become profitable and has further growth prospects left to uncover. 


    Now, if you have developed interest in the company, then let us discuss about the IPO.

    • Nykaa IPO date

    Nykaa IPO will be open to apply from 28th October 2021 to 1st November 2021.

    • Nykaa IPO price band

    The issue size of the Nykaa IPO is Rs. 5351 crores roughly at a price band if Rs. 1085-1125. 

    • Nykaa IPO listing

    Nykaa IPO is expected to get listed on November 8.


    Nykaa IPO issue size
    Nykaa IPO issue size
    Source - Groww


    Common Questions

    • Why is Nykaa coming with an IPO ?

    Nykaa's vision is to establish itself into a company that provides a complete ecosystem in the fashion industry, unlike a lot of IPOs where either promotors use IPO to earn money by selling their shares or pay off the debt. So, the reason in case of Nykaa is for business expansion. 

    • Is Nykaa IPO overvalued?

    As per the P/E ratio, Nykaa does seem to be overvalued. But, at least the P/E ratio is positive because the company is profitable, unlike most of the digital businesses that come up with an IPO while being in loss. Also, as the revenues of the company increase, the PE ratio will adjust accordingly. 

    • Shoud I invest in Nykaa IPO for listing gains?

    Nykaa is expected to give good listing gains. This is visible from the subscription rate:-


    Nykaa IPO subscription rate
    Subscription Rate of Nykaa
    Source - Groww


    Along with that, the grey market premium is high and predicts around 50% listing gains.

    • Should I invest in Nykaa for long term?

    Nykaa seems to be a good stock to hold for the long term because of the following 2 reasons:-

    • The fashion and lifestyle industry is in a growth phase and will continue to do so with lifestyle inflation. Going forward, Nykaa targets to capture the entire fashion industry. This includes consultation services, beauty advice and much more.

    • Nykaa has already become popular among the common people and built a strong social media presence which is clearly visible in the IPO subscription rate of the retail segment. This also helps Nykaa to cut down the marketing expenses.


    Do comment if you applied for the IPO and whether you got the allotment.

    • Topics you might be interested in


    • Frequently Asked Questions (FAQs)

    1. What is Nykaa IPO price?

    The issue size of IPO is Rs. 5351 crores roughly at a price band if Rs. 1085-1125.

    2. What is Nykaa IPO close date?

    Nykaa IPO will be open to apply from 28th October 2021 to 1st November 2021.

    3. When is Nykaa IPO listing?

    Nykaa is expected to get listed on November 8.

    4. How to buy Nykaa IPO?

    Nykaa IPO can be purchased from any stock broker that supports IPOs. If you are looking out for a discount broker, you can use Groww. 

    5. How much is Nykaa IPO grey market premium?

    The grey market premium is high as of now and predicts around 50% listing gains.


    Thanks a lot for reading. Hope you had a good time and got some valuable information!

    Labels:

    Comments

    Post a Comment

    Popular posts from this blog

    Alkyl Amines buy or not

     Not many of us know how to analyse a chemical sector stock. Through this blog, I will try to help you understand the industry in the simplest possible way. Also, we will end the discussion with a comparison of Alkyl Amines with Balaji Amines and other chemical companies like Deepak Nitrite. Table Of Contents 1. Alkyl Amines Business Alkyl Amines Chemicals Ltd. was started   in 1979 by  Mr Yogesh Kothari . It  operates in  a very small segment of the chemical industry -  the   amines  and is currently one of the largest manufacturer in India (around 50%), along with Balaji Amines. Amines play a major role in the pharmaceutical industry and agrochemicals. These are primarily used as a solvent. Alkyl Amines' Business comprises of 3 major segments:- • Aliphatic Amines Methyl amines and Ethyl amines are the aliphatic amines used to make  different types of derivatives. These can also be sold directly and are used by Alkyl Amines t o produce vario...
    Post a Comment
    Read more

    Should I buy IEX for bonus | IEX Fundamental Analysis | IEX record date

    Indian Energy Exchange (IEX) is in news again due to the announcement of the board confirming the issue of bonus shares on 21st October 2021. So, are you thinking of buying IEX at the current levels? If yes, then this post will cover all you need to know before making your decision. Table Of Contents 1. IEX business The greatest advantage is the  monopoly  IEX holds in its sector, till now (NTPC is also planning to enter the power trading sector). This energy trading industry is in a growth stage and has huge potential. Thus, IEX being the only major player (more than 95% market share) providing a platform for electricity/power trading activities is expected to show further growth in the future. 2. IEX stock fundamentals Next thing you should know are the  fundamentals , which are too good for IEX. From the company's annual reports, let us do a 6 pointer analysis :- Sales - Increasing every year ✅ Profits - In an uptrend ✅ Operating Profit Margin - Above 80%  ✅...
    Post a Comment
    Read more

    Should I buy Laurus Labs | Laurus Labs fundamental analysis | Laurus Labs buy price

    Interested in a stock from Pharma sector? Ready to take a little higher risk? Looking out for a share capable of generating multi bagger returns? Then, this stock is for you. Table Of Contents Laurus Labs business Is Laurus Labs a good company? Laurus Labs is a small cap pharmaceutical company operating as a contract manufacturer(CDMO business), involved in APIs (low cost advantage) and continuously growing in terms of new products and patents. Laurus Labs Annual Reports On analysis of annual reports (feel free to skip this section, although I have tried to make it simple to understand)- The EBITDA increased considerably(150+%) due to forward integration in formulations. High R&D capabilities have aided in further cost cutting(50%) and capturing market share in new products(30+%) over the time. The ROE and ROCE of the company are up to the mark consistently (even if we ignore the covid scenario). Why is Laurus Labs stock price increasing? Anoth...
    Post a Comment
    Read more