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Below is quote on Nykaa IPO By Mr. Jyoti Roy - DVP- Equity Strategist, Angel One Ltd

The Nykaa IPO received great response from investors and was subscribed ~ 82 times which translated to a blockbuster listing for the stock. The stock is trading at an 80% premium to the issue price of Rs. 1125. We had given a subscribe rating to the IPO. At current levels Nykaa is trading at price to sales of 38.9x of FY2021 revenue which is at a discount to Zomato (54xFY2021 revenues). Nykaa is one of the very few profitable Unicorns in India and we believe that the company is well positioned to benefit from the exponential growth in the online beauty and fashion retailing business over the next decade. Given the discount to Zomato we would recommend investors to remain invested in Nykaa from a long term perspective.

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