Nazara Technologies, which is included in Rakesh Jhunjhunwala’s favorite shares, climbed 7.36 percent to Rs 1702 today (26 August 2021). Gaming firm Nazara Technologies had made a net profit of Rs 13.6 crore in the first quarter of the financial year 2021-22. In its last financial year i.e. 2020-21, it had a loss of Rs 21.7 crore. Now well-known brokerage company Jefferies has advised to buy in Nazara Technologies. A target price of Rs 2070 has been kept for this stock. The brokerage house says that it is a very good stock in terms of gaming ecosystem and it is showing good growth.
There has been a sharp decline in the shares of the company
Nazara Technologies is the only company in the country to be listed on the stock market. On June 30 this year, it was listed on BSE and NSE with an 80 per cent premium. The stock had reached Rs 2026.90 on the day of listing. But since then the shares have fallen. However, its shares climbed above 7 per cent on Tuesday. Since then it is expected to increase. Well-known brokerage house Jefferies has expressed the possibility of good profits in this. Whereas earlier CLSA had feared a fall of 40 percent in this stock.
CLSA had said in its report dated 2 August that the stock of Nazara Technologies could fall 40 per cent from its current price. That is, its price can fall to Rs 1095. He says that the company’s revenue was less than his estimate. The company’s sales in the June quarter grew by 45 per cent to Rs 131.20 crore as against Rs 90.50 crore in the same quarter last year.
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Nazara Tech the Leader Gaming Company in E-Sports
Gaming company Nazara Tech is a leader in e-sports. The share of e-sports in the revenue of the gaming sector is ten percent. The total revenue is more than 750 crores. E-sports has been growing at 55 per cent since 2018 but still remains a niche segment. Although no competitor of Nazara is listed in the stock market, it competes with e-sports platform, Paytm First Games, Jio Games and Dream11.