Nazara Technologies: The stock of Nazara Technologies has returned 42.68 percent in the previous half-year. Throughout that same period, the benchmark Nifty50 index has returned 6.45%.
Nazara Technologies’ stock increased by more than 1% in early trading on November 9 following the company’s remarkable 53.3 percent increase in Q2 net profit to Rs 24.2 crores. The Nazara Tech stock was trading at Rs 851.21 on the NSE at 10:52 a.m.
On November 8, Nazara Technologies revealed a 53.3 percent increase in net profit from Rs 15.77 crore in the same quarter last year to Rs 24.2 crore for the quarter that ended on September 31, 2023. The company attributed this growth to its gaming and esports segments.
Operational revenue for the quarter was Rs 297.2 crore, up 12.7 percent from Rs 263.8 crore in the same quarter the previous year.
Three major industries are currently served by Nazara Technologies: esports (Nodwin Gaming, Sportskeeda), gaming (World Cricket Championship, Kiddopia, Animal Jam, Classic Rummy, etc.), and advertising (Datawrkz).
The company raised Rs 510 crore during the quarter from SBI Mutual Fund and Nikhil Kamath, the co-founder of Zerodha. The company is a diversified gaming and sports media company that aims to grow its current businesses by putting money aside for possible acquisitions. The company’s request for up to Rs 750 crore has been approved by shareholders.
“We are laying a solid foundation for FY25 as well as the remaining portion of FY24, and our strategic focus is still strong.” The founder of this company Nitish Mittersain stated, “With a consolidated cash position of approximately Rs 1,300 crore, this company is exceptionally well-positioned to seize acquisition opportunities and expedite our growth in the years ahead.”
The company also unveiled Nazara Publishing, a new division dedicated to publishing games created by Indian developers worldwide. In addition, Nazara Publishing will collaborate with international developers to localize and distribute these games in India.
Over the next 18 months, this company intends to release up to 20 games for mobile, web3, virtual reality (VR), and PC, with a minimum investment of Rs 1 crore per game.
We recognize the substantial ‘Make in India’ potential within the gaming industry, where Indian developers have the opportunity to create top-tier games for both the domestic and international markets, said Mittersain.
Stock call for Nazara Technologies: Verify the target price and brokerage views.
In the first cut research report released following the results, the brokerage firm Prabhudas Lilladher has initiated a ‘hold’ rating on the Nazara Technologies stock, with a target price of Rs 836. In the report, Jinesh Joshi, a research analyst at Prabhudas, added, “Tax write-backs drove Nazara Technologies’ profit after tax (PAT).”
The performance of Nazara Technologies’ stock
In the past six months, the stock of Nazara Technologies has returned 42.68 percent. Over the same period, the benchmark Nifty50 index has returned 6.45%.
